OREANDA-NEWS. On 18 August 2008 was announced, that Belarus’ consumer price inflation went up 0.8% on the month in July 2008, compared to 0.6% in June, 1.3% in May, 1.2% in April, 0.8% in March, 0.7% in February and 2.5% in January, an official in the Statistics Ministry told.

January-July showed an 8.1% inflation rate, which compares to 4.1% in January-July 2007.

Over the past 12 months consumer prices have risen 16.3%.

Food prices went up 0.6% in July and 7.6% in January-July, non-food prices went up 1.4% and 4.7%, respectively, and consumer services prices increased 0.5% and 14%.

In 2007, inflation accelerated 12.1%, above the original annual target of 6%-8%, and worst since 2004, which recorded a 14.4% inflation pace.

The government had hoped it would be able to keep inflation pace within 6% and 8% this year.

As a result, the average interest rate on new loans will reach 14%-17%, and the average annual deposit rate will settle between 11% and 14%.

In 2009, the refinancing rate of the central bank will rest between 10% and 12%, with inflation forecast between 9% and 11%, under the forecast.

The 10.25% refinancing rate was set on July 1, 2008.