Prices under control

Belarus has one of the lowest inflation rates in Europe

Despite the high turbulence on the outer circuits, the Belarusian economy has not lost control. The same inflation is decelerating steadily, as planned, and is within the target. Moreover, in April, the consumer price index amounted to 4.7 percent in annual terms. This is one of the lowest rates in Europe. At the same time, the picture in the European Union is not the brightest: inflation is kept at the level of 14-15 percent in some countries. 

Aleksandr Kulevsky

  Thanks to the set of measures adopted in Belarus, annual inflation in the country reached 12.8 percent at the end of last year, instead of 19, as originally predicted. 
However, the trend towards a slowdown in annual inflation in the country continues. Compared to our neighbours, only Russia showed the best result (11.9 percent). For the rest, the success was much worse: for example, in Poland, prices for consumer goods and services in December 2022 compared to the same month of the previous year increased by 16.6 percent, in Latvia — by 20.8, in Lithuania — by 21.7, in Ukraine — by 26.6 percent. Overall, 2022 has been a challenging year for the entire world, with double-digit inflation facing most Eurozone countries.

The European Union cannot yet boast of price stability. And if the ‘old’ members of the union — France, Germany — were able to stay at a more or less decent inflationary level (5-6 percent) in April, then inflation on the outskirts of the EU is going through the roof. In Poland, Lithuania, Latvia is indecent 14-15 percent. 
Strictly speaking, there is nothing surprising. The energy crisis has not disappeared. Yes, it lost a bit of drama and sharpness. But there is a shortage of energy in the Old World. Last year’s bursts of quotations for gas, coal and other energy carriers then transformed into an unprecedented industrial inflation. And now the old problems are gradually being broadcast to the consumer market.
The Europeans are beginning to gradually rage from the high cost. If the indigenous inhabitants of developed countries still make ends meet due to a higher standard of living, then the same migrants find themselves on the sidelines. And splash out their resentment through crime. Crime is growing exponentially. Theft breaks all records.
In a word, the energy crisis provoked the economic one. The decline in the standard of living of the population results in social friction. However, even European politicians, perhaps, do not know how they will get out of this situation.
MEANWHILE
According to the IMF forecast, global inflation will decrease in the coming years: global consumer price growth is expected to be 7 percent in 2023. The UN gives another figure — 5.2 percent.

By Polina Konoga, Vladimir Volchkov