Fluctuation in prices at The Mart observed in July, with prices rising and falling.
According to recent data, the inflation rate in Belarus has been rising notably, reaching 7.4% year-on-year in July 2025, the highest since February 2023. This increase has been mainly driven by higher prices for food (around 10.6%), services (7.6%), and housing and utilities, while non-food goods inflation slowed slightly to 3% [2][3][4].
The rise in consumer prices, especially for essential goods like food and services, has effectively outpaced income growth, leading to a decline or stagnation in real income for many Belarusians.
Specifically:
- The CPI (consumer price index) growth of about 7.4% year-on-year signals that average prices have increased faster than many income allowances.
- The Ministry and Belstat note that price inflation in key sectors (food, services, housing) directly affects household budgets, implying a squeeze in real income.
- Although some wage adjustments occur, they have not fully kept pace with the accelerating inflation, leading to a reduction in real incomes relative to price increases, effectively lowering consumer purchasing power [2][3][4].
However, it's worth noting that people in Belarus have more money left than before due to the income increase. The real incomes of Belarusians increased by 10.2% in the first half of the year compared to the same period last year, even after accounting for inflation [2][3].
Moreover, the rate of monthly inflation has decreased compared to June, with a 0.2% increase in prices in July and a 5.6% increase over seven months [5][6]. Some seasonal goods, such as vegetables, fruits, summer clothing, and footwear, have decreased in price, offering some relief to consumers [1].
Despite these challenges, the Ministry of Antimonopoly Regulation and Trade and Belstat have reported that the situation is under control, and inflation is not eating into incomes [7]. Prices remain stable, according to the Ministry, with the Ministry of Antimonopoly Regulation and Trade assuring that prices remain stable [8].
Comparing the current situation to December, prices have increased by 5.6%, with food up 7.3%, non-food up 2.4%, and services up 6.7% [9]. Imported goods like tea, coffee, confectionery, and apples have increased in price, while some seasonal goods, such as vegetables, fruits, summer clothing, and footwear, have decreased in price [1].
In conclusion, while Belarusian incomes may have nominally risen, the faster rate of inflation—particularly in food and essential services—has eroded real income levels, as documented by Belstat and the Ministry of Antimonopoly Regulation and Trade in recent reports [2][3]. The situation, however, is under control, and the government is working to stabilise prices for the benefit of the people.
References:
- The Nation
- Belstat
- Ministry of Antimonopoly Regulation and Trade
- World Bank
- Ministry of Antimonopoly Regulation and Trade
- Belstat
- Ministry of Antimonopoly Regulation and Trade
- Belstat
- World Bank
The rise in inflation, predominantly in food and services sectors, poses a significant challenge to many Belarusians' real income, as the Consumer Price Index growth outpaces income growth. This situation, according to the Ministry of Antimonopoly Regulation and Trade and Belstat, directly impacts business profits, as lower consumer purchasing power decreases demand for goods and services.
