Inflation in Belarus in 2016 will exceed 2015 levels

The Belarusian authorities are planning to keep inflation within 18% in 2016 as the worst case scenario. As forecasted, inflation in 2015 was around 12%, which was possible due to price regulation, exclusion of some items from the list of socially important goods and reduced cross-subsidization of housing services. In 2016, the inflation rate is likely to exceed the forecast of 12%. Wage cuts will curb price hikes due to the unfavourable economic situation. In addition, importers will include currency risks into the price of supplied goods. The state will retain control on the consumer market, and if prices go up, it may apply administrative measures to control prices, which may lead to a shortage of some commodities.