Pricing Liberalization Not to Cause Price Growth, Ministry of Economy

01.03.2011 10:15
Архив Редакция

Belarusian Ministry of Economy does not expect landslide in rising or falling of prices in connection with pricing liberalization in the country. This was announced by Director of the Pricing Department of Ministry of Economy Igor Fomin on February 28. "Liberalization of pricing in Belarus will not cause any price growth," said the ministry's representative.

Commenting on the decree №72 of February 25, 2011 «On some issues of prices (tariffs) regulation in the Republic of Belarus,» Igor Fomin said: «Currently there is no reason to believe that the abolition of certain conditions would cause excessive demand for the goods or would trigger inflation.»
 
«There is inflation of demand, inflation of supply and inflation of expectations. If we are not going to unwind inflation expectations (which are, perhaps, profitable for some people), as can be currently seen with buckwheat, I doubt a significant increase in inflation,» said the representative of Ministry of Economy, BelTA informs.
 
At the same time Igor Fomin assured that «inflation would be controlled, due to the state regulation of prices for socially important goods.»

Prices Not rising in Belarus without any Social Protection Measures, Ministry of Economy

In addition, the Ministry spokesman said that the prices and tariffs in the country didn’t rise without measures of social security. «Belarus cannot respond to the processes, occurring with prices in the world, — said Igor Fomin. — We cannot remain aloof with our open economy from today’s world processes, including oil price growth.»
 
The increase in the world prices for raw materials, sugar, metals also has a negative impact on the economy of Belarus and its development, noted the director of the department. «But prices and rates do not rise in Belarus due to the measures of social protection being applied,» added Igor Fomin.

The representative of the Ministry of Economy acknowledged that social protection measures were different. Industrial workers and retirees may receive different social support. «However, Belarus has a mechanism that helps to protect citizens from higher prices and tariffs,» the director of the department. According to him, such a state policy of pricing will remain unchanged in the future.

«In general, the further liberalization of pricing will depend on the processes, emerging in the domestic and foreign markets. In this case one should consider here the factor of the enterprises’ development. They attract investments, innovations, which is impossible without financing. Therefore, they are also interested in the liberalization of pricing,» concluded Igor Fomin.

As Telegraf previously reported, pricing will be liberalized in Belarus from March 1, 2011 in order to reduce the scope of state regulation of prices and tariffs. The corresponding decree № 72 «On some issues of prices (tariffs) regulation in the Republic of Belarus» was signed by President of Belarus Alexander Lukashenko on February 25.