MARCH: the intensity of inflationary processes is decreasing

June 15, MINSK. The intensity of inflationary processes is decreasing, BelTA learned from the press service of the Ministry of Antimonopoly Regulation and Trade.

“In May, the intensity of inflationary processes continued to decrease: the annual increase in consumer prices slowed down to 0.2 percentage points and amounted to 17% (in April, annual inflation accelerated by 0.8 percentage points, in March - by 5.9). April 2022 was 0.7% (1.6% a month earlier), by December - 11.9%," MART said.

According to analysts, the main impact on inflation is the increase in the costs of domestic producers against the backdrop of the continuing rise in the cost of raw materials and supplies needed for the production of consumer goods, as well as the constant increase in prices for automotive fuel. Pressure remains on the consumer market from fluctuations in the Russian ruble, disruption of supply chains, as well as a decrease in the supply of goods (raw materials) imported from Ukraine.

Thus, world prices for soybean meal increased by an average of 9.8% over the year, fertilizers almost doubled. In January - March 2022, compared to the same period in 2021, purchased seeds and planting material increased in price by 22.7%, purchased feed - by 8.3%, mineral fertilizers - by 60.8%, plant and animal protection products - by 20.6%, transportation of goods - by 12.3%, zootechnical and veterinary services - by 19.5%.

As for inflation in RUSSIA, consumer prices there increased by 17.1% over the year in May, including food prices by 20.1%.

According to MART, the Belarusian ruble has strengthened on average against a basket of currencies by about 0.4% over the month due to strengthening against the US DOLLAR and the euro (about 9.5% and 12.3%, respectively). At the same time, against the currency of the main trading partner - the Russian Federation - the Belarusian ruble weakened by 10.9%.

In Belarus, MEAT and meat products have risen in price by about 16.8% over the year, MILK and dairy products - by 11.4%. Prices for motor fuel over the past 12 months increased by 22.7%. The increase in prices for goods in the fruit and vegetable segment in May slowed down from 45.1% in annual terms by 12.7 percentage points, but still remained at an increased level - 32.4%.

There is a favorable trend in prices for certain non-food products: the annual increase in prices for shoes in May slowed down by 2.8 percentage points and amounted to 7.9%, for dishes - by 0.7 percentage points (13.4%), televisions - by 0.4 percentage points (24.5%). For the second month in a row, a slowdown in the annual increase in tariffs for passenger transport services has been recorded: in April - by 4.1 percentage points to 12.3%, in May - by 4.2 percentage points to 8%.

In May, meat and meat products, as well as milk and dairy products rose in price by 1.5% and 1.9% respectively, confectionery - by 3.9%, bread and bakery products - by 4%. Fruit and vegetable products fell seasonally by 7.8%, including vegetables - by 14.5%, fruits - by 5.4%. The decline in prices for cucumbers and tomatoes had the greatest impact on the slowdown in inflation (by 47.9% and 16.7%, respectively). Prices for potatoes for the month increased by 5.2%.

In May, the annual increase in permanently regulated prices (tariffs) accelerated to 11.4% (10.6% a month earlier), largely due to higher prices for motor fuel, tobacco products and alcoholic beverages.

Prices for automobile fuel for the month increased by 3.5%, alcoholic beverages - by 3.3%, tobacco products - by 0.2%, tariffs for communication services rose by 0.5%.

In order to consolidate all the requirements in one regulatory legal act, a government decree of April 7, 2022 No. 214 "On price regulation" was adopted. "The document was developed taking into account the interests of all market participants, it logically builds approaches to price regulation in Belarus. Also, a new legal act introduced price regulation for non-food products - soap, toilet paper, napkins, diapers, feminine pads, powdered synthetic detergents and cleaning products, toothpaste, shoes and hosiery for children," the MART said.

Also, the profitability of the manufacturer and importer is limited to 10% or not higher than the level of the previous year, and markups in trade are 30%.

MART controls the price situation in the consumer market, reveals violations. Thus, for five months of 2022, 481 facts of non-compliance with the requirements of regulatory legal acts regulating pricing issues were established.