BELARUS NEWS AND ANALYSIS

DATE:

28/08/2007

Higher grain prices hike bread cost in Belarus

MINSK, August 28 (Itar-Tass) -- Wheat and rye flour prices will grow by 4.5% in Belarus this August and September, Deputy Economy Minister Vladimir Adashkevich said on Tuesday.

He did not rule out another rise of flour and bread prices before the yearend.

The official explained the increase of flour prices with higher costs of gasoline (27.7% growth for farmers since the year beginning), diesel fuel (33.9% growth), gas (89.5%) and electricity (45.8%). Therefore, the government enlarged the purchasing price on rye by 14.7%, and another 16% on wheat.

"There will be no surprise hikes of bread prices," Adashkevich said.

The Belarussian government is regulating bread prices, and the majority of bread types are accessible for a large majority of local residents. A 1.4-kilo bread loaf costs less than 2,000 Belarussian rubles ($0.9). There are cheaper and more expensive kinds of bread. An average monthly salary in Belarus nears $341, while an average monthly pension is approximately $136.

Source:

http://www.itar-tass.com/eng/level2.html?NewsID=11823288&PageNum=0