Belarus to hand-control inflation
The Trade Ministry has suggested that retailers stopped purchasing products from suppliers, who sharply raised prices. Such a request is due to the anticipated reduction in the discount rate, the requirement to reduce the production costs by 25% and the need to meet the annual inflation plan at 12%. In January-March 2016, consumer prices in Belarus increased by 5.7%. In the near future, the range of goods is likely to decrease, administrative pressure on wholesale traders is likely to increase, profits of importers of goods are likely to decrease and inflation should reduce to 0.5-0.7% per month. The Trade Ministry will not apply sanctions for reduced assortment of goods if retailers refuse to purchase goods that are more expensive.
According to Belstat, in August 7,600 people were dismissed, including 4,800 civil servants. Dismissals of civil servants were due to the optimisation in the public administration by up to 30%. Some civil servants would retain their job however would lose the status of a civil servant. Vacancies on the labour market are likely to reduce in number, thanks to the optimisation, the state administration would increase wages for public servants. The payroll fund for retained employees is likely to increase and some former state employees are likely to get jobs in affiliated organizations. The optimisation of the state apparatus should complete by January 1st, 2018, and some former civil servants are likely to join the ranks of the unemployed.