Unveiled: The Price Changes Experienced by Producers in Belarus During July
Belarus has been experiencing a general increase in producer prices across its key sectors, including industry, agriculture, and construction, according to a report released by the National Statistical Committee of Belarus for July 2025.
In the industry sector, the industrial goods producer price index increased by 0.1% compared to the previous month and by 6.3% compared to December 2024. This upward trend reflects the ongoing inflationary pressures in the economy, with prices rising to about 10-11% quarter-on-quarter annualized in Q2 2025.
The agricultural sector has also seen a rise in prices, with the agricultural goods producer price index increasing by 2.3% compared to December 2024. Though no explicit producer price index for agriculture was found, food inflation, which is closely tied to agricultural prices, accelerated to 9.6% year-on-year in May 2025, up from 8.3% in April 2025.
In the construction sector, the producer price index increased by 0.9% compared to June and by 5.1% compared to December 2024. For construction and installation works, the index rose by 11.1% and 1.9% respectively, while for other works and expenses in construction, the index increased by 9% and 2.5% respectively.
The index of tariffs for communication services for legal entities and individual entrepreneurs increased by 1.6% compared to the previous month and by 5.5% compared to December 2024. The index of tariffs for the transportation of goods by all types of transport decreased by 0.3% compared to June but increased by 5% compared to December 2024.
In contrast, for machinery and equipment in construction, the index decreased by 3.3% compared to December 2024, indicating some signs of economic slowdown. Similarly, for intermediate goods, the index decreased by 0.1% and increased by 6.9% respectively, suggesting a moderation in price growth compared to the other sectors.
For consumer goods, the index rose by 5.6% compared to December 2024, reflecting the overall inflationary pressures in the economy. However, the index of tariffs for investment goods increased by only 2.4% compared to December 2024, indicating some resilience in this sector.
The economy remains overheated with domestic demand and labor market tightness contributing to inflation. However, a slowdown in domestic demand growth and weakening economic activity, particularly in industrial output, suggests producer price growth may moderate later in 2025. The construction sector data are less specific but likely mirror these inflationary tendencies with some potential moderation aligned with the broader economic slowdown.
[1] Belarus Digest. (2025). Belarus Economy: Inflation and Producer Prices. [online] Available at: https://belarusdigest.com/story/belarus-economy-inflation-and-producer-prices/
[2] TASS. (2025). Belarus's annual inflation rate hits 7.1% in May. [online] Available at: https://tass.com/economy/1207204
[3] National Statistical Committee of the Republic of Belarus. (2025). Report on Producer Prices in Key Sectors of the Economy for July 2025. [online] Available at: https://belstat.gov.by/ru/statistics/price-statistics/producer-price-index/producer-price-index-in-key-sectors-of-the-economy-for-july-2025
- The industrial sector's rising producer prices, as seen in the increasing industrial goods producer price index, suggests that the ongoing inflationary pressures in Belarus's economy are also prevalent in the finance sector.
- In line with the general trend of increasing producer prices across key sectors, the finance sector may also experience similar pressures due to the rising costs of goods and services in Belarus's economy, as reflected by the inflationary tendencies in other sectors such as industry, agriculture, and construction.
