ArmInfo. Inflation was fixed at 1.7% in the Armenian consumer market in January 2019, with y-o-y inflation at 0.6% (in January 2019 compared to January 2018), while a year earlier in January 2018 the monthly and annual inflation were the same 2.7%.
The January inflation was largely triggered by the rise in prices for food products (including alcohol and cigarettes) by 3.8% (against 5.7% growth in January 2018) and increase in tariffs for services - by 0.2% (against the same growth in January 2018), while non-food products became cheaper by 0.6% (against 1.5% growth in January 2018). In the capital, consumer prices for January this year increased by 1.2%, against 2.5% growth for January 2018.
On an y-o-y basis (January 2019 by January 2018), inflation in the consumer market was provoked by an almost equal increase in food and non-food goods - by 0.5% and 0.9%, respectively, and an increase in tariffs for services by 0.6%, against a similar y-o-y picture statute of limitations (in January 2018 by January 2017): the rise in prices for food and non-food products by 4% and 3.6%, respectively, and an increase in tariffs for services by 0.6%.
According to statistics, the January inflation in the food market is mainly due to the rise in price of fruits and vegetables by 6.4% and 28.8%, respectively (against a growth of 10% and 34.3% in January 2018). In comparison with January 2018, vegetables fell in price by 10.1% (against a decline of 2.1% a year earlier), while fruits rose in price by 7.2% (against a growth of 0.9% a year earlier). In the capital vegetables for January this year went up by 22.4%, and fruits - by 6.4%, against a rise of 34.6% and 9.7%, respectively, in January 2018.
In January 2019, a rise in prices for fruits and vegetables was recorded at a total of 21.3%, and this group of goods, having a share of 8.36% in consumer basket, had a upward effect on the general consumer price level by 1.8 percentage points. A year earlier, in January 2018, there was a rise in price of vegetables and fruits by a total of 25.11%, gasoline, diesel fuel and gas for refueling vehicles - by 11.2%, and this group of goods, having a specific weight of 8.58 % and 3.65% respectively, had on the overall level of consumer prices upward effect of 2.54 percentage points.
Dairy products, cheese and eggs dropped by 2.2% on an annual basis, but only in January they went up by 0.7% (due to the increase in the cost of eggs in the reporting month by 3.1%). In the capital, this group of goods has risen in price by 0.2% in January.
In January, non-alcoholic beverages, coffee, tea and cocoa rose in price by 0.2%, as well as bakery products and cereals by 0.4%. Fish and seafood rose by an annualized price of 2.9%, while in January they fell by 1.7%, and in the capital the prices for these products decreased by 1% in January. Meat products on an annual basis went up in price by 4.8%, but only in January fell in price by 1.2%, and in the capital, meat products fell in price by 1.5%. Oil of plant and animal origin in January fell by 0.1%. In January 2019, only alcoholic beverages, cigarettes, sugar and granulated sugar did not change in price.
In the non-food market, the January deflation was triggered by cheap shoes - by 3.3%, clothes - by 1.5%, fuel and lubricants - by 1.2%, household appliances - by 1.1%, building materials - by 0.8%, kitchen utensils and gardening tools - by 0.5%, medicines - by 0.2%, carpets and floor coverings, office supplies - by 0.1%. Gasoline and diesel prices fell in January by 6.7% and 5.7%, respectively, with the y-o-y decline in prices by 6% and 2.4%. In the capital, non-food products fell 0.8%.
The January increase in prices for services was mainly due to an increase in tariffs for recreation services - by 2.2%, in the field of transport - by 0.2%, hairdressing salons - by 0.1%. At the same time, tariffs for services of restaurants, cafes and other catering facilities decreased by 0.2%. In the reporting month, tariffs for housing and communal services, in the fields of communication, education, culture, health care, and legal services remained unchanged.
To note, following the results of 2018 (January-December), inflation at 1.8% was recorded in the consumer market of Armenia, against inflation at 2.6% in 2017. This was largely triggered by a rise in prices for non-food products by 3.2%, rather than food (including alcohol and cigarettes) - by 1.8%, while tariffs for services increased by 0.8%. The average monthly increase in consumer prices in January-December 2010 amounted to 0.1%, against 0.2% growth a year earlier. On an y-o-y basis (January-December 2018 by January-December 2017), inflation also was recorded in the consumption market - 2.5% (against inflation of 1% a year ago), which was due to a 2.5% rise in food prices (against a growth of 4% a year earlier), non-food products - by 4.5% (against a cheaper price by 1.8% a year earlier) and an increase in tariffs for services by 1.2% (against a decrease of 1.3% a year earlier).