Economic activity in Belarus begins to produce disinflationary effect - NBB
<p> MINSK, Aug 4 - PrimePress. Economic activity in Belarus has begun to produce a disinflationary effect, the National Bank of Belarus (NBB) says in a report posted on its official website. </p> <p> </p> <p> “Countercyclical measures of under budgetary and monetary policies restrained the slowdown in economic activity. Inflationary expectations remain high, still being one of the key price growth factors. Monetary conditions that reflect the cumulative impact of interest rates and the exchange rate on the economy remained neutral,” reads the report. </p> <p> </p> <p> “The slowdown in core inflation and the growth rates of regulated prices and tariffs in the second quarter of 2020 failed to compensate for a significant acceleration in the growth rates of prices of fruits and vegetables. In conditions of low business and consumer activity, as well as due to a decrease in the volatility of the exchange rate of the Belarusian ruble, the dynamics of free prices was characterized by a gradual slowdown. In June 2020, the annual core inflation was at 3.7% against 4% in March 2020,” the NBB says. </p> <p> </p> <p> In the food segment, the slowdown of price growth was observed mainly in relation to essential goods as demand for them on the part of the population got weaker. To a certain extent, this was facilitated by some measures taken by the government to prevent unreasonable growth of prices of socially important goods. </p> <p> </p> <p> An improvement in the price situation is evidenced by a decline in June 2020 of the aggregate indicator of trend inflation to 3.1% in annual terms (3.8% in March 2020). Restrained in the face of unfavorable external factors, the pricing policy led to slower growth of regulated prices and tariffs to 6.7% in June 2020 from 7.5% in March 2020. </p> <p> </p> <p> As imports were affected by the COVID 19 pandemic, the annual growth rate of prices of fruits and vegetables increased in the second quarter from 4% in March to 21.5% in June 2020. The economic impact of the pandemic led to the recent years’ largest decrease in import prices. </p> <p> </p> <p> As previously reported, inflation in Belarus in June 2020 stood at 0.2% to compare with 3.4% in January-June. The official inflation forecast for 2020 is at or below 5% the NBB thus does not rule out an increase to 6%. End </p> <p> </p>
2020-08-05
Primepress
Economic activity in Belarus begins to produce disinflationary effect - NBB
MINSK, Aug 4 - PrimePress. Economic activity in Belarus has begun to produce a disinflationary effect, the National Bank of Belarus (NBB) says in a report posted on its official website.
“Countercyclical measures of under budgetary and monetary policies restrained the slowdown in economic activity. Inflationary expectations remain high, still being one of the key price growth factors. Monetary conditions that reflect the cumulative impact of interest rates and the exchange rate on the economy remained neutral,” reads the report.
“The slowdown in core inflation and the growth rates of regulated prices and tariffs in the second quarter of 2020 failed to compensate for a significant acceleration in the growth rates of prices of fruits and vegetables. In conditions of low business and consumer activity, as well as due to a decrease in the volatility of the exchange rate of the Belarusian ruble, the dynamics of free prices was characterized by a gradual slowdown. In June 2020, the annual core inflation was at 3.7% against 4% in March 2020,” the NBB says.
In the food segment, the slowdown of price growth was observed mainly in relation to essential goods as demand for them on the part of the population got weaker. To a certain extent, this was facilitated by some measures taken by the government to prevent unreasonable growth of prices of socially important goods.
An improvement in the price situation is evidenced by a decline in June 2020 of the aggregate indicator of trend inflation to 3.1% in annual terms (3.8% in March 2020). Restrained in the face of unfavorable external factors, the pricing policy led to slower growth of regulated prices and tariffs to 6.7% in June 2020 from 7.5% in March 2020.
As imports were affected by the COVID 19 pandemic, the annual growth rate of prices of fruits and vegetables increased in the second quarter from 4% in March to 21.5% in June 2020. The economic impact of the pandemic led to the recent years’ largest decrease in import prices.
As previously reported, inflation in Belarus in June 2020 stood at 0.2% to compare with 3.4% in January-June. The official inflation forecast for 2020 is at or below 5% the NBB thus does not rule out an increase to 6%. End