Telegraf.by - EDB: Accelerated inflation to benefit Belarus

The annual growth of the consumer price index in Belarus reduced from 12.3% in July to 11.8% in August. This means that inflation in the country is at its minimum since February 2011 and may go down further in the next few months. Konstantin Fyodorov, an expert from the Country Analysis Division of the Research Department at Eurasian Development Bank, stated this in the Macroeconomic Digest distributed by EDB.

According to him, the key factor for the current decrease in inflation is the toughened monetary policy coupled with the efforts to stabilise the Belarusian ruble in July and August.

However, consumer prices in Belarus are expected to accelerate their growth to a certain extent in the autumn because of the devaluation of the ruble in the second half of August, and under the influence of monetary factors, if the weaker control of the exchange rate makes it possible to stop monetary contraction.

The expert states that, "these developments may be considered desirable from the point of view of economic stability pursued by the country."