MARCH: stabilization of the situation on the foreign exchange market contributes to the decrease in the intensity of inflation

Topic newsthemesthemes

September 14, MINSK. The stabilization of the situation in the foreign exchange market contributes to the decrease in the intensity of inflation. This is stated in the review of the price situation in the consumer market in August 2022, prepared by the Ministry of Antimonopoly Regulation and Trade, BelTA informs.

In August, there is a slowdown in inflationary processes both in relation to the previous month and in annual terms: the increase in the consumer price index amounted to 0.1% compared to July (0.5% in July), compared to December 2021 - 13.8%, in in annual terms - 17.9% (18.1% a month earlier). "The decrease in the intensity of inflation is facilitated by the stabilization of the situation in the foreign exchange market, the restoration of prices for food commodities in world markets, and the slowdown in the annual increase in prices for fruits and vegetables," the MART said.

In August, the Belarusian ruble strengthened on average by 3.1% against a basket of currencies, including against the Russian ruble - by 5%, against the US DOLLAR - by 0.8%, against the euro - by 1.5%, against the Chinese yuan - by 1.9%.

The growth of world food prices, according to the FAO, in August slowed down to 6.1% in annual terms against 11.1% in July, 21.5% in June. Prices for MEAT in annual terms increased by 6.4% (7.4% in July), MILK - by 21.5% (23.4%), cereals - by 9.5% (14.7%), by oil - decreased by 3.2% (in the previous month increased by 6.8% in annual terms), SUGAR - decreased by 9.9% (in July increased by 1.3% in annual terms).

As for Belarus, the greatest impact on inflation continues to have a rise in the price of meat and meat products (17.8% in annual terms), alcoholic beverages (15.9%), milk and dairy products (13.5%). The annual increase in prices for goods that are not produced or produced in insufficient quantities in the country remains at an elevated level: synthetic detergents (32.1%), cereals and legumes (28.9%), electrical goods (26%), fish and fish products (24%).

Compared to the previous month, prices for meat and dairy products continued to rise in August: meat and meat products rose by about 1.4% compared to the previous month, milk and dairy products - by 1.9%. Prices for goods in the non-food segment continue to rise: clothes rose in price by 1.1% over the month, cars - by 2.4%, perfumes and cosmetics - by 3.1%.

In general, fruit and vegetable products fell in price by 17.4% over the month, including potatoes - by 37.3%, vegetables - by 34.1%, fruits - by 7.7%. Prices for white cabbage decreased by 36.6%, tomatoes - by 48.1%, cucumbers - by 34.2%, apples - by 4.4%.

The growth of permanently regulated prices (tariffs) slowed down from 11.8% (in June-July) to 11.5% in annual terms in August.

Compared to the previous month, there is an increase in prices for vodka and tobacco products (by 0.9% and 0.85, respectively), as well as medical services (by 0.4%).

Price regulation measures are applied in Belarus: Resolution of the Council of Ministers dated April 7, 2022 No. 214 is in force. In addition, until the end of 2022, it is possible to receive a social discount of 10% on certain groups of socially significant goods for pensioners, the disabled, parents (legal representatives) raising a disabled child under the age of 18, large families, low-income segments of the population in accordance with the legislation.