Belarusian govt plans to re-introduce state regulation of prices, new salary hike
MINSK. Nov 25 (Interfax) - The Belarusian government is planning to introduce state regulation of staple food prices and another increase of public sector wages, Belarusian Deputy Prime Minister Anatoly Kalinin said.
"Currently, prices are free but we can see what is going on: the manufacturer sells a product at one price, and the retailer for twice as much. So who should be earning: a manufacturer or brokers?" Kalinin was quoted as saying by Belarusian state media outlets.
"Unfortunately, these national issues have not been settled, so certain groups of food and industrial groups have to return to regulated prices," he said. This will primarily affect the everyday essential consumer products, prices on staple food products and industrial goods will be regulated and restricted, he said.
The government is also planning another increase in the first-grade tariff rate and a significant increase of the minimum wage, the deputy prime minister said.
These measures are part of the government plan for social protection and consumer price regulations, which is due to be approved by the Cabinet of Ministers soon, Kalinin said.
It was reported that Belarusian President Alexander Lukashenko demanded that the government take measures in November-December to stop consumer price growth estimated by the Economic Ministry at 120% by yearend. In October, the real wage (adjusted for inflation) dropped by 5.2% compared to September, despite a 28% increase in the first-grade tariff rate from October 1 to 151,000 Belarusian rubles. In October, the nominal average wage rose 44% on December 2010, with the inflation reaching 88.7% over the period.
A sharp rise in inflation in Belarus this year is due to the triple devaluation of the Belarusian ruble caused by a currency crisis, and the simultaneous liberalization of the price-formation system.
