According to the data of the National Statistical Committee, the index of consumer prices for goods and services in July 2017 amounted to 99.9% as compared to June 2017 and to 103.3% as compared to December 2016.
It is markedly lower than in prior years.
The service tariffs regulated by the state continued to grow, the non-food prices did not change over January-July, and the food prices finally began to reduce. As a result, the consumer price index reduced in July this year for the first time since August 2016.
The core consumer price index excluding the change in prices for some goods and services influenced by the factors of administrative and seasonal nature, according to the data of the National Statistical Committee, amounted to 100.4% in July 2017 as compared to June 2017 and to 102% as compared to December 2016. It means that the inflation is mainly caused by the state regulation and seasonal factor.
The inflation slowed down in Q1 and then grew in Q2. Q3 began with the deflation. The prices for food products fell in July. It was the maximum reduction this year. The prices for non-food products began to grow. The growth rate of the service price index gradually slows down.
The reduction in prices for food products was mainly driven by fruit and vegetable products. As it was expected, the warm weather had a wholesome effect on the ripening period and output of the Belarusian agricultural products.
The prices for non-food products rose due to the school readiness (children's clothes and footwear, writing materials) and warm weather. Children began to play outdoors more; therefore, the expenses on detergents grew.
The inflation equaled to 6.0% on a year-on-year basis (July 2017 as against July 2016). It totaled 12.2% in 2016. When comparing with the last month's data, the annual inflation even reduced by 0.5%. Therefore, it is highly possible that the inflation will not exceed 9% this year.