OREANDA-NEWS. On 12 May 2009 was announced, that Belarus’ consumer price inflation is likely to remain below 0.6% in April, Economy Minister Nikolai Zaichenko told.

Inflation rate will not exceed 8% in the first half of the year, Zaichenko said. “There are no plans to revise the inflation forecast for this year, which stands at 11.5%, although we admit it would be a tough task. Summer will help us – it is traditionally a favorable time of the year, and August normally sees a decline in consumer prices,” Zaichenko said.

According to him, the ministry plans to increase excise tax rates, which is expected to spur inflation.

The situation on the money market of Belarus is stable, according to Zaichenko. The national currency is kept in the fixed band around the basket parity. “The Belarusian RURle is depreciating against the Russian RURle, which is good for exporters. On the other hand, the situation is stable in respect of the U.S. dollar and euro. Banks have been buying more cash currency from households than selling for four weeks now,” the minister said.

He said the early year devaluation move helped stabilize the market. “But trade partners are trying to protect their markets by devaluating their currencies, which is a precondition for devaluation wars. However, I see no reason for another one-off devaluation,” Zaichenko said.