Friday, July 6 2018 14:25

ArmInfo. 0,6% deflation was registered in the consumer market of Armenia in the first half of 2018 against 1,2% inflation in the same period in 2017. According to  the National Statistical Service of Armenia, this was provoked by a  decrease in the prices of food products (including alcohol and  cigarettes) by 3%, amid growth of prices of non-food products by 1,9%  and tariffs for services by 1,1%.

On a year-over-year basis (as compared to January-June 2017), the inflation rate was fixed at 2,4% (against inflation of 0.5% a year ago), conditioned by the rise in  price of food products by 2,1%, non-food products - by 4,8%, and an  increase in tariffs for services by 1.5%. Average decline of consumer  prices totaled 0,1% in Jan-Jun 2018 against 0,2% growth in previous  year. 

According to statistics, in June 2018, compared to June 2017,  consumer prices increased by 0,9% due to a rise in price of non-food  products by 5,3%, and decline of prices on food products - by 1,6%  and increase in tariffs for services by 1.4%.  In June alone, a  deflation of 1,6% was registered against the background of a  reduction in the price of food products by 3,4%, with a decline in  the price of non-food products by only 0.3% and a decrease in tariffs  for services by 0.1%. In Yerevan, consumer prices declined in June  2018 by 1,5%, against decline of 0,9% a year earlier.

In June deflation in the food market was mainly due to the reduction  in the price of vegetables by 26,5%, in Yerevan alone by 25,4%. In  y-o-y terms (compared to June 2017) vegetable prices declined by  22.6%. Fruits dropped in price by 1.4% in June, amid 16,1% y-o-y  decline. At the same time, the prices on frutis declined by 2,5% in  Yerevan in June. In overall prices of fruits and vegetables dropped  by 18,1% in June. The share of this products in consumer basket  totaled 8,36% influecning the consumer prices to fall by 1,5%.  

Sugar dropped in price by 2.2% in June, and by 12.6% in y-o-y terms.  In Yerevan the price on sugar dropped by 2% in June. 

Dairy products, cheese and eggs dropped in price by 2,1% in June  (price on eggs fell by 8,9%). In y-o-y terms the prices on these  products did not change. In Yerevan the prices on the abovementioned  products dropped by 1% in June 2018.

Bakery products and cereals, as well as non-alcohol beverages,  coffee, tea and cocoa fell in price by 0,2%. 

Meat products rose in price by 8,9% in annual terms, however in June  alone the prices did not change, while in the capital 0,5% growth was  registered. 

Salad and melted oil rose in price in June 2018 versus June 2017 by  15%, and only in June - by 0.8%. In the capital, the price grew by  1,1%.

Fish and seafood rose in June by 0,2%, and alcohol and cigarettes by  1.3%, moreover cigarettes alone by 3.4%.

In non-food market in June gasoline did not change in price, while  diesel fuel increased in price by 0,1%, compared with June 2017  gasoline and diesel fuel increased by 17% and 26% respectively. In  January-June 2018 gasoline and diesel fuel went up by 9.3% and 20.7%,  respectively. 

Clothing decreased in price by 4,8% and footwear by 3,5%, small  household electric devices by 0,5%, jewelry by 0,5%, furniture-0,4%,  garden tools-0,3%.  At the same time the following goods increased in  prices: cleaning and washing materials - by 2,3% carpets and floor  coverings-1,6%, medicines-1,2%, household items-0,5%, a cooking  outfit-0,1%.In first half of 2018 clothes and footwear fell in price  by-5,1%, In June alone by -4,3%. In June 2018 against June 2017  clothing and footwear grew by  4,1%, and in Jan-June 2018 versus  Jan-June 2017 by 5,2%. In Yerevan alone non-food goods fell in price  by 0,4% in June.

Decline in prices for services in June was mainly due to the decrease  in tariffs for recreation organization - by 5.5%, cultural  sector-0,2%. At the same time in June tariffs for apartment repair  services housing and communal services rose by-0,1%, tariffs on  transport  services by 0,2%(due to an increase of 0,6% in tariffs for  international flights), while tariffs for household appliances  repair, medical care and communication services and education did not  change. In the capital, tariffs for services fell by 0.1% in June.

To note, in the first half of 2017 the inflation rate in Armenia was  1.2%, but in June a deflation of 0.9% was registered. In particular,  in January-June, food products grew by 3.9%, with a reduction in the  price of non- food products by 1.6% and a decrease in tariffs for  services by 0.8%. Annual inflation (January-June 2017 to January-June  2016) amounted to 0.5%, which was caused by the rise in price of food  products by 4.1%, with a decrease in the price of non-food products  by 3.1% and a decrease in tariffs for services by 2.2%. In June 2017,  compared to June 2016, the consumer market recorded inflation of 1.1%  due to a rise in the price of food products by 4.9%, with a decrease  in the price of non-food products and a decrease in tariffs for  services by 2.9% and 1.4%, respectively. Only in June 2017, deflation  in 0.9% was fixed against the background of cheaper food and non-food  products by 2.2% and 0.4% respectively, with a 0.2% increase in  tariffs for services. In Yerevan, consumer prices fell by 0.9% in  June 2017.