Irina Levkovich on the situation with prices for socially significant goods in the Vitebsk region
– To briefly characterize the price situation in the consumer market of the Vitebsk region, it is stable, – emphasized Irina Petrovna. – The issue of prices and pricing is under special control of the head of state, who stressed in his Address to the Belarusian people and the National Assembly of the Republic of Belarus that it is prices that are the topic that most concerns the population. If they are high, then the salary will always seem insufficient. A medium-term task has been set to keep inflation within 5%, and authorities must immediately respond to unjustified price increases for goods and services.
I must note that the global crisis due to the complex epidemiological situation has not bypassed us, which could not but affect the inflation rate. Measured by the consumer price index, inflation for the first seven months of this year in the region amounted to 104.1% with a planned figure for this year – 105%.
– What are the main factors that influenced the inflation rate this year?
– First of all, it is the deterioration of external conditions: there was a reduction in the supply of goods, an increase in contract prices for food products from importers. This mainly affected critical import goods (buckwheat, semolina, rice, fish, vegetable oil, coffee, tea), and certain types of fruits and vegetables. For example, prices for fish and fish products increased by 2.7% in 7 months of 2020, cereals and legumes – by 7.7%, vegetable oil – by 5.6%, and fruits and vegetables – by 15.9%.
For comparison. In the Russian Federation, according to the Federal State Statistics Service, in June 2020, the increase in the cost of buckwheat from the beginning of the year was 37.7%, semolina – 8.3%, polished rice – 13.2%, legumes – 8.6%.
Taking into account the current situation, in April, the government introduced temporary state price regulation by establishing maximum markup limits for certain socially significant goods in order to prevent their increase, including for meat, fish, bread, milk, vegetables, cereals, baby food, respiratory protective equipment, and disinfectants.
The timely adoption of such measures has partially mitigated the negative impact of inflationary factors and kept price changes for basic goods at a moderate level. Currently, the situation in the consumer market of the republic has stabilized, there is no increased demand from the population, and there is a sufficient range of socially significant goods. In June of this year, the Ministry of Antimonopoly Regulation and Trade (MART) excluded from regulation the prices of instant coffee, canned meat and fish, powdered milk, solid laundry soap and toilet soap, matches, sanitary pads, diapers (for children and adults), and toilet paper.
– The state has always regulated sugar prices. Does this remain in effect?
– Yes. Temporary price regulation is carried out for white crystalline sugar with the establishment of a maximum minimum price of not less than 1.50 rubles per 1 kg and a maximum trade markup of 15% until the end of the year; for buckwheat groats – with a maximum trade markup of 25% until September 30, 2020.
– Tell me, are prices only increasing, or are there other examples?
– Of course, there are. According to statistical data, in July 2020, compared to December of last year, a decrease in prices was observed in the Vitebsk region for meat and meat products, chicken eggs, wheat flour, millet groats, fresh tomatoes, and cucumbers.
In addition, I must note that in July of this year, the average retail prices for most consumer goods were lower than or at the level of the average prices for the republic: for meat and meat products, milk and dairy products, cheeses, eggs, pasta, fresh vegetable products, fish, and fish products.
In the second half of the year, a gradual stabilization of the fruit and vegetable market is expected, leading to a gradual return of inflation to the projected trajectory.
To stimulate purchasing activity, retail enterprises, including in cooperation with producers, are holding various marketing events: promotions, extended sales with price reductions.
In the first half of 2020, 1598 sales, fairs, and exhibition sales of food and non-food products were held in the region.
– What measures are the authorities taking to avoid sharp price increases for goods and services?
– In Belarus, as in all countries, there are prices and tariffs that are regulated by the state, as well as those set independently by economic entities based on market conditions. To prevent a one-time increase in regulated prices, utility tariffs, for example, are raised in two stages – in January and June (for a typical two-room apartment, the increase will not exceed 5 dollars).
A commission under the Council of Ministers has been established to make decisions on changing regulated prices and tariffs, as well as on introducing temporary measures to regulate pricing for certain groups of goods. It includes representatives from a wide range of government bodies. At the commission's meetings, the economic justification for each planned price (tariff) change is considered. This allows for informed decisions, taking into account the financial condition of organizations in the sector and the validity of costs, to prevent the sale of goods and services below cost and to maintain their affordability for the population.
To promptly respond to problematic situations arising for citizens in the trade sector, a "hotline" is organized daily on weekdays at the main department of trade and services of the regional executive committee. Appeals are promptly reviewed, and measures are taken to prevent improper trade services in the future.
Issues of stability in the region's consumer market, including price affordability and the availability of a wide range of goods, are under constant control of the Vitebsk Regional Executive Committee and city/district executive committees.