Consumer prices grow slowly and inevitably
In order to eliminate the disparity in food prices between Russia and Belarus, the government is planning to raise prices by 5-10% every month. Mass-scale devaluation in terms of open borders within the Customs Union resulted in decreasing real incomes and also in vanishing of goods from shelves.
The Ministry of Economy has increased the price of natural gas and heating tariffs by 10% for some categories of consumers (hospitals, kindergartens, etc.) that pay for energy at the same rate as the population.
Selling prices for a number of socially important goods: bread, bread, milk, yogurt, sour cream and cottage cheese, etc have been increased by 5%.
In order to eliminate the disparity in food prices between Russia and Belarus, the government is planning to raise prices by 5-10% every month. However in the current circumstances it could result in higher inflation and money growth. Therefore, the large-scale devaluation in terms of open borders within the Customs Union resulted in decreasing real incomes and also in vanishing of goods from the shelves. Belarus has no solutions how to fight against the mass-scale export of goods to Russia bearing open borders in mind.
Last week, Belarusian Foreign Minister Makei participated in the foreign ministers’ meeting of the Eastern Partnership and Visegrad Group initiative hosted by Warsaw. The Belarusian FM emphasized Belarus' interest in cooperation in the transport sector, which could be due to Belarus’ desire to export electricity surplus after Belarus finished construction of the nuclear power plant in Ostrovets. Minsk expressed concerns about Warsaw’s stance on the Belarusian NPP, as it refused to buy electricity from Belarus and supported Vilnius’ protest on this issue. Following accusations by the Belarusian leadership and the state media against western states, including Poland, of training "nationalist militants", Minsk did not agree on the visit of the European Parliament deputies from Lithuania and Germany to Belarus and to the NPP construction site near Ostrovets in particular. In addition, the Belarusian authorities have stepped up efforts to enforce education in Russian in Polish-language schools in Grodno and Vaukavysk. Should a rift in Belarusian-Polish relations persist, the Belarusian authorities are likely to step up the pressure on the Polish-speaking minority in Belarus.