Ban on price increases in Belarus may help to meet outlook for inflation in 2015

The Trade Ministry has announced a moratorium on price increases during the holiday season. With this decision, the authorities are aiming to implement the forecast for inflation in 2015, which should not exceed 12%. In January – November 2015 inflation was 10.7%. In order to curb the price-hikes, retailers will organise fairs and sales, and importers may postpone concluding new contracts due to the price restrictions and anticipated depreciation of the BYR. As a result, the outlook for inflation may be met, while financial health of industrial and commercial enterprises may deteriorate. As soon as the moratorium is lifted, price-hikes are quite possible in order to compensate for incurred costs.