Consumer prices grow slowly and inevitably
In order to eliminate the disparity in food prices between Russia and Belarus, the government is planning to raise prices by 5-10% every month. Mass-scale devaluation in terms of open borders within the Customs Union resulted in decreasing real incomes and also in vanishing of goods from shelves.
The Ministry of Economy has increased the price of natural gas and heating tariffs by 10% for some categories of consumers (hospitals, kindergartens, etc.) that pay for energy at the same rate as the population.
Selling prices for a number of socially important goods: bread, bread, milk, yogurt, sour cream and cottage cheese, etc have been increased by 5%.
In order to eliminate the disparity in food prices between Russia and Belarus, the government is planning to raise prices by 5-10% every month. However in the current circumstances it could result in higher inflation and money growth. Therefore, the large-scale devaluation in terms of open borders within the Customs Union resulted in decreasing real incomes and also in vanishing of goods from the shelves. Belarus has no solutions how to fight against the mass-scale export of goods to Russia bearing open borders in mind.
According to Belstat, in August 7,600 people were dismissed, including 4,800 civil servants. Dismissals of civil servants were due to the optimisation in the public administration by up to 30%. Some civil servants would retain their job however would lose the status of a civil servant. Vacancies on the labour market are likely to reduce in number, thanks to the optimisation, the state administration would increase wages for public servants. The payroll fund for retained employees is likely to increase and some former state employees are likely to get jobs in affiliated organizations. The optimisation of the state apparatus should complete by January 1st, 2018, and some former civil servants are likely to join the ranks of the unemployed.