Inflation continued slowing down in June 2018. The annual increase in consumer prices totaled 4.1%.
Annual inflation:
5.4% in March;
5% in April;
4.4% in May;
4.1% in June.
Inflation – money depreciation.
Inflation effects:
falling purchasing capacity of money;
falling real value of earnings and savings of individuals;
rising pressure on the exchange rate.
Deflation – falling prices, a process contrary to inflation.
Deflation effects:
merchandise producers stop developing;
personnel layoffs;
falling salaries.
Inflation and deflation affect the economy in negative ways. This is why keeping prices stable is the main goal of the monetary management policy in Belarus.
Source: The National Bank of the Republic of Belarus.