The Authorities Are Scrambling
- 24.06.2025, 19:01
Is inflation in Belarus getting out of control?
Something is wrong with inflation in Belarus. It seems that the Belarusian authorities know much more about it than they tell us. Otherwise, it is not very clear why they make such a fuss. First, the National Bank suddenly raised the refinancing rate. And then, the Ministry of Trade decided that price control in stores is not enough for price stability. It is also necessary to control the markets, writes planbmedia.io.
The National Bank announced the increase of the refinancing rate on Monday. From June 25, it will increase from 9.5 percent to 9.75 percent. The rates on liquidity support operations will increase by the same step. That is, the money in the country will become more expensive, and accordingly, there will be less money in the country.
And nothing foreshadowed such a turn. This year, the National Bank predicted an average rate of 9 to 9.3 percent. That is, it was going to reduce it. Three months ago, head of the National Bank Roman Golovchenko said that there were no imbalances or signs of overheating in the Belarusian economy. And two weeks ago, he also explained that everything was fine with the refinancing rate, because inflation in Belarus was under full state control.
And suddenly everything changed. Inflation became not so controlled, and monetary liquidity in the country, it turns out, is excessive, and in general, all sorts of bad imbalances appeared.
"The analysis shows that, despite the preservation of positive dynamics of economic growth, macroeconomic imbalance is growing, caused by the widening gap between the growth rates of labor productivity and wages," said Golovchenko.
So the National Bank has made its contribution to strengthening price stability. The contribution, however, is symbolic, but one has to start somewhere.
Because price control cannot cope with prices alone. Although the authorities are trying very hard. Last week the Ministry of Trade cancelled partial liberalization of prices for meat, milk and sweets. The patience was enough for a short time.
And on Tuesday the Ministry of Trade came up with a new initiative. The Ministry of Trade has prepared a draft decree, according to which prices at markets will now be regulated no worse than in stores.
"For sellers who are legal entities and individual entrepreneurs, it is stipulated the obligation to have a document justifying the calculation of retail prices for goods at each trading place during the entire period of work at the market," the draft decree says.
The MART does not require reasonable calculations from grandmothers selling violets near the subway. But, probably, the grandmothers still have a long way to go. Because price stability in Belarus, it seems, is already in such a hysterical state that it can be thrown out of balance by anything.