Inflation on a short-term break in Belarus
According to the National Statistics Committee, consumer prices in July 2014 rose by only 0.9% since June 2014, the lowest monthly growth in 2014.
Due to the possible increase in demand for dairy and meat products from Russia, as well as the planned increase in transport and utility tariffs, inflation is expected to increase in the coming months. Inflation will only partially be corrected by the seasonal decline in vegetable prices. Prices on imported products may soar due to the additional costs for importers of consumer goods, i.e. when Council of Ministers regulation No 361 takes effect. In addition, the recently enacted restrictions on the share of chain retailers on the regional market will reduce price competition in the regions, thus not constraining price growth on the regional level.
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.