OREANDA-NEWS. On 12 May 2009 was announced, that Belarus will continue its price liberalization efforts; the Economy Ministry has prepared a resolution to extend the list of commodities subject to price formation on the basis of the market situation, the head of the price policy department with the ministry, Igor Fomin, told.

Free price formation will apply to hardware products, including locks, brushes, vegetable seeds, pet shop goods, furniture fittings, electrical fittings, grooming products, plant treatment agents, frozen foods (vegetables and fruit), etc.

Rice, buckwheat and millet, as well as sugar substitutes have been included in the list of products whose prices are regulated by the state.

Fomin believes prices will soon be getting down in Belarus. “We have reduced crushed stone, cement and glass prices and will soon cut the construction and assembly index, which is expected to reduce construction costs,” he said.

Asked whether the hike in import duties will result in higher prices, Fomin said some articles on the list, like overcoats and tights were produced domestically. “As for prices at markets, they do not fall, because entrepreneurs tend to import in smaller batches. There are clients ready to buy more expensive goods, and sellers will naturally raise prices, otherwise there is no sense in raising them,” the official said.

Consumer prices increased 6.1% in the first quarter. "The consumer price index is going down – to 0.6% in March from 1.2% in February and 4.1% in January,” the official with the ministry said.

Fomin noted that food prices had gone up 2.5%, non-food prices increased 1.8%, and service prices rose 1.8%.

The government is not going to revise its annual inflation forecast, at 11%.

State interventions on the fruit and vegetable markets proved efficient, Fomin said. “There were drops in prices for potato and onion in March, because we have sufficient supplies of vegetables. Critical import prices are rising – banana and citric fruit prices have gone up, but in summer imported fruit prices will decline, because we will have substitutes at home,” Fomin added.