Chaly: Commodity prices will not change

The Government of Belarus has canceled the resolution which held back the growth of retail prices of goods. But this does not mean that prices will go up dramatically, says economist Syarhei Chaly.

In the commentary to Euroradio, the expert noted that the latest draft of the resolution prohibiting price rises of December 18 and allowing only to modify them in accordance with the exchange rate differences, raised them to the level where they are limited by consumer demand.

"At a time when there is no increase in wages and household profits, prices can be raised, but it is unlikely that stores would do it. Now people are saving on the goods and products, so there isn't much growth potential there," believes the economist.

According to Chaly, commodity prices will largely depend on the salaries of Belarusians. However, according to forecasts of economists, they are unlikely to rise:

"If  the policy announced by the National Bank and the government doesn't change, which is to ensure macroeconomic stability by limiting domestic demand, then, in fact, this year we shouldn't expect a growth of wages even in nominal terms. This means that there will be a drop in real terms at the level of inflation."

With regard to goods imported into or manufactured in Belarus, the burden will not go to final consumers, but will be distributed in the wholesale and retail network.