The Government fails to get full control over inflation rate growth
The consumer price index since the beginning of January 2012 came to 101.5%. If the growth of inflation rate does not slow down, Belarus will fail to meet the projected inflation rate for 2012 at 19-22% per year.
The consumer price index since the beginning of January 2012 came to 101.5%. Since the beginning of the month the highest increases in prices were as follows: tobacco products (9.4%), vodka (7.9%), beer (5.8%), canned fish, soft drinks (3.1%), beef (other than boneless meat) (2.3%), herring, salt (2%), liver (1.8%), smoked sausages (1.5%), fresh fish, milk, margarine, wheat flour, semolina, canned meat, fruit and vegetables (1-1.2%), drugs (5.2%), knitwear (2.5%), fabrics, perfumes and cosmetics (2.2%), health and recreation services (19.5%), cultural services (19.3%), medical services (5.1%), shore services (2.7%), higher education cost (2%).
During less than a month the inflation rate of 1.5% exceeds the projected rate and exceeds the inflation rate in 2011 (1.4%) and 2010 (0.8%). Chances that the government would fit within the projected inflation rates are low due to focus of the latter on the wages growth (as of 1 January 2012 the first-grade worker salary rate increased by one third) and social benefits, while at the same time local executives and heads of enterprises are tasked with growth of production rates with insufficient funding of state programmes.