Second year at a run 0,9% deflation within annual 0,2% recorded at Armenian market

ArmInfo.It’s the second year at a run a deflation is recorded in Armenia – forming   0,9%  this year versus 1,4% in February 2016.This was preconditioned mostly by the foodstuff  prices decrease (including alcohol and tobacco) – for 1%, nonfood goods – for 0,9% and services rates - for 0,7%  respectively.

In annual view ( February 2017 versus February 2016) the consumer market also shows  a deflation – at 0,2% (versus that  of 1,7 for the same period of last year), but in this case the nonfood  products and services tariff prices show almost equal step of decrease – for 3,5 and 3% respectively, while the foodstuff prices flew up for 3,1 %.

In January-February 2017 the consumer prices increased for 1,7%  being caused by foodstuff prices increase for 5,5 %, within the nonfood products price decrease for 1,2% and services tariffs  drop down   for 1,6.  In comparison to January-February 2016 the deflation at the consumer market formed 0,4% due to the 3,4%  dropdown of nonfood products prices, as well as of services tariffs decrease  for 2,5%, while the foodstuff prices grew for 2%. According to the information shared with ArmInfo by the National Statistics Service of Armenia, the consumer prices in Yerevan decreased in February for 1% versus that for 1,5 % a year ago.

According to the statistics, the February deflation at the foodstuff market is preconditioned mainly with cheapening of fruits and vegetables for 1,3% and 5,6% respectively. In comparison with February 2016 the vegetables and fruits became more expensive for 20,1% and 20,8% respectively.

Dairy products, cheese and eggs have cheapened in February 2017 versus February 2016 for 3,2%, at that only in  February of this year the dairy products and cheese prices decreased for 0,6% and eggs – for 2,7%.

Meat products cheapened in annual view for 1%, but only in February  grew in prices for 0,1%

Vegetable  oil  and butter prices grew in February 2017 versus February 2016 for 0,4%, and only for February the growth formed 0,5%.

The sugar power in annual view  went up for 16,3%, and only for February – for 1,1 %, at that the prices for the sugar powder in the capital grew for 1,5%.

At nonfood market clothes and shoes cheapened in February for 3,9%,  in comparison to  February 2016 – for 2,9%, and in January-February – for 5%. Petrol and diesel fuel in February grew up  for 9,2% and 10,1% respectively,  in comparison to the same month of 2016 cheapened for 7,3% and  4,9%, and for January-February grew for 5,6%  and  10,9% respectively

The  services cheapening  of services was preconditioned mainly  with electric power and gas tariffs decrease – for 2,8% and 2,3% respectively. Medical treatment services cheapened in February for 0,2 %, and leisure services – for 0,6%. At the same time the transportation services tariffs grew for  1,3%. The tariffs for the services dropped down in February for 0,7%.

To recall, foodstuffs fall in price 4.4%, year-on-year deflation for Jan-Feb 2016 totaled  1.1%, amid 0.8% increase of nonfood prices and 3.4% increase of service tariffs.  The National Statistical Service told ArmInfo that in Jan-Feb 2016, inflation totaled 0.8%. After 2.2% inflation in January, a 1.4% deflation was registered in February. In particular, food prices increased 1.7%, amid 1.1% decline of the prices of non-foods and 0.7% increase of service tariffs. In Feb 2016 versus Feb 2015, deflation in the consumer market total 1.7%, as foodstuff prices fell 5.4% and those of the non-foods - 0.1% amid 3.4% growth of service tariffs.  In Feb 2016 alone, food prices fell 2.9% (or 3.2% exclusive of alcohol and tobacco), non-foods - 0.6% while service tariffs increased 0.3%. 

To remind, based on results of 2016  the consumer market of Armenia experienced deflation for the second year in a row - 1.1% in 2016 versus 0.1% in 2015. This was mainly due to reduction in nonfood prices (3.4%), tariffs of services (0.7%) and food prices (0.2%). In Jan-Dec 2016 versus Jan-Dec 2015, the consumer market of Armenia saw 1.4% deflation due to 3% and 2.5% reduction in food and nonfood prices, respectively, amid 1.8% growth in services tariffs.

In December 2016, consumer prices grew by 1.1% (versus 1.7% growth in Dec 2015). In December 2016, food products rose in price by 3.1% (2.8%, alcohol and tobacco inclusive), nonfood items rose in price by 0.8%, and the tariffs of services grew by 0.2%. The Armenian National Statistical Service has told ArmInfo that in Jan-Dec 2016 the average monthly decline in consumer prices made up 0.1% versus 0.01% decline a year before.

In December 2016, the 3.1% inflation (alcohol and tobacco exclusive) on the food market of Armenia was mostly due to 27.7% growth in vegetable and potato prices. Fruit grew in price by 2.8% in December 2016.  Granulated sugar, alcohol and cigarettes rose in price by 0.2%; meat products, animal fat and vegetable oil - by 0.1%; dairy products, juices, coffee, tea and cocoa underwent no changes in price. At the same time, confectionary dropped in price by 1.1%, cereal products - by 0.2%, eggs - by 0.5%.

On the nonfood market, footwear dropped in price by 3.6%, cosmetics - by 2.9%, household appliances - by 2.8%, sanitary products - by 2%, detergents - by 1.7%, clothes and knitwear - by 1.4%, construction materials - by 1.2%, furniture - by 1%, carpets and gardening items - by 0.1%. At the same time, pieces of art grew in price by 1.3%, medicaments - by 1.2%, jewelry - by 0.6%, stationery - by 0.2%, textile - by 0.2%, fuel - by 0.1%. Petroleum and diesel fuel fell in price by 4.1% and 1.2%, respectively.

As regards the tariffs of services, travel agencies' services grew in price by 5.9%, legal and banking services - by 2.2%, public catering services - by 0.2%. At the same time, culture and transport services fell in price by 0.9% and 0.3%, respectively. Utility services, as well as the services in medicine, communications and education underwent no changes in price.