Government can’t stop price rise

Situation with inflation rate in Belarus remain tight, the Ministry of Economy acknowledged, and if accept suggestion of the Ministry of Agriculture on increase in purchasing price of milk and meat, a 6-month inflation rate will be exceeded within a month, deputy minister of economy Uladzimir Adashkevich stressed.

The Ministry of Agriculture offers to raise milk purchase price by 25 per cent, and prices of cattle and pigs – by 5.3 per cent. Thus, sale prices of milk, sour cream and cottage cheese will rise by average 25 per cent, price of butter will increase by 47 per cent, cheese – by 16 per cent, meat – by 16 per cent, meat food – by 14 per cent.

“It was offered to raise sale prices to compensate for what we didn’t compensate last year,” the deputy minister of economy said.” ”It will cost us about 2.3 per cent of inflation. Taking into account the decision on increase in utility payment (it adds 0.6 per cent to inflation rate), the inflation rate only in January can rise above 3 per cent, and the 6-month rate will be exceeded.”

The question is still open whether officials will manage stop price rise in the country by only soviet style methods without serious economic reforms.