Inflation Yet To Peak

Following the government's decision to freely float the Belarusian ruble in late August, we expect consumer price inflation to continue heading higher over the coming months, and our end-2011 forecast has been raised to 70.0% from 45.0% previously as a result. While inflation should stabilize and beginning heading lower in 2012, significantly higher import costs and punitive interest rates will hammer domestic demand this year.

To read the full article, please choose one of the following options: