Armenian Consumer market third year in February registers deflation by 0.5%

ArmInfo. On the consumer market of Armenia, deflation for 0.5 consecutive years in February is fixed, against 0.9% in February 2017 and 1.4% in February 2016. The Armenian National Statistical Service told ArmInfo that consumer prices in Yerevan fell by 0.6% in February, against the decline of 1% in February 2017 and a decrease of 1.5% in February 2016.

The February deflation was mainly caused by a decrease in the prices of food products (including alcohol and cigarettes) by 1.1% (against a decline of 1% a year earlier), with a meager reduction in the price of non-food products - by 0.1% (against a 0.9% a year earlier) and the growth of tariffs for services - by 0.1% (against a decrease of 0.7% a year earlier).

In the annual cut (February 2018 to February 2017), the consumer market recorded an inflation of 3.3% against a background of almost similar rise in price of food and non-food products - by 4% and 4.6% respectively, and growth in tariffs for services by 1.6%. By way of comparison, we note that in February 2017, by February 2016, deflation was registered at 0.2% (versus deflation of 1.7% a year ago), and non- food items fell almost equally, and service tariffs fell by 3.5% % and 3%, respectively, with a rise in price of food products by 3.1%.  In January-February 2018, the consumption grew by 2.4% due to a rise in the price of food products by 4.1%, non-food prices - by 1.6% and a 0.5% increase in tariffs for services. In comparison with January- February 2017, inflation in the consumer market amounted to 3.1% as a result of a rise in price of food products by 4%, non-food prices - by 4.1% and increase in tariffs for services by 1.2%. A year earlier, in January-February 2017, the consumption grew by 1.7% due to the rise in price of food products by 5.5%, while the price of non-food items went down by 1.2% and the tariffs for services decreased by 1.6%, and in comparison with January -February 2016 deflation in the consumer market amounted to 0.4% due to a decrease in the price of non-food products by 3.4% and a decrease in tariffs for services by 2.5%, while food prices went up by 2%.

According to statistics, the February deflation in the food market is due mainly to the cheapening of vegetables and fruits by 7.5% and 2%, respectively. Compared with February 2017, fruits and vegetables fell 4.2% and 0.6%, respectively. In the capital, vegetables for February fell by 8%, and fruits - by 1.6%.  Dairy products, cheese and eggs fell in February 2018 by 0.5%, mainly due to a 3.1% decline in the price of eggs. Compared with February in 2017 this group of products went up by 7.2%. In the capital, dairy products, cheese and eggs fell 0.2% in February. Sugar fell by 9.5% in annual terms, but only in February - by 0.4%, while in the capital the price of granulated sugar fell by 0.3% in February.  Confectionery products fell 0.1% in February, while coffee, tea and cocoa did not change in price.

Meat products rose in price by 14.1% on an annual basis, but only in February - by 1%.

Fish and seafood rose in price by 25.5% on an annual basis, but only in February - by 0.9%, and in the capital - by 1.9%.

Bakery products rose 0.18% in February 2018, soft drinks, vegetable and melted oil rose 0.3%, alcohol and cigarettes went up 0.4%.

In the non-food market in February, prices for footwear and clothing dropped 3.8% and 0.9%, but rose by household appliances, carpets and floor coverings - 0.1%, drugs - 0.9%, furniture - 1.1 %, kitchen utensils - 1,2%. Gasoline and diesel fuel went up 3.6% and 3.4%, respectively, compared to February 2017 - by 22.2% and 29%, and in January-February - by 9.1% and 20.3%.

The February rise in prices for services was mainly due to the increase in tariffs in healthcare - by 1.7%, in transportation - by 0.9% (due to 1.4% increase in the cost of air tickets for international flights), in culture and organization rest - by 0,2%. Parallel to this, in February utility services fell by 0.3%, hotels - by 1.5%, and in communication and education, tariffs for services did not change. In the capital, tariffs for services declined in February by 0.1%.