Tuesday, July 7 2020 18:58

ArmInfo. In the first half of 2020,  inflation in the consumer market of Armenia was recorded at 1%,  against 0.1% inflation in the same period of 2019. This was triggered  by a 2.3% rise in prices for foodstuffs and an increase in tariffs  for services by 0.6%, amid drop in prices of non food products  (including alcohol and cigarettes) by 0.9%. In y-o-y terms (compared  with the first half of 2019), the consumer market recorded inflation  of 0.5% (against inflation of 2% a year ago), which was facilitated  by a rise in price of non-food products by 1% and an increase in  tariffs for services by 1.3%, with no changes in prices of food  prices. According to the data of the Statistical Committee of the  Republic of Armenia, the average monthly growth in consumer prices  amounted to 0.2% in the first half of 2019, against the growth by  0.02% a year earlier.

In June 2020 versus June 2019, consumer prices increased by 1.7%  (against growth by 2.5% a year earlier) due to a rise in price of  food products by 2.9% (against 4.6% growth a year earlier) and  increase in tariffs for services by 1.3% (against 0.1% growth a year  earlier), while non-food items dropped in prices by 0.2% (against  growth by 1.9% a year earlier). In June alone deflation was recorded  at 1.4% (versus deflation 1.9% in May 2019), which was mostly  triggered by a 3.1% drop in food prices (versus a 4% decline in May  2019), while prices of non-food goods fell only by 0.5% (against the  0.3% decline in May 2019), with an increase in tariffs for services  by 0.2%. In Yerevan, consumer prices decreased in June 2020 by 1.3%,  against a decline of 1.8% in May 2019.

According to statistics, the June deflation in the food market was  mainly due to a 22% drop in vegetables.  In y-o-y terms (in  comparison with June 2019), prices for vegetables increased by 4.6%  (against an increase of 19.1% a year earlier).

Dairy products, cheese and eggs fell in price by 1.4% in June, and by  3.5% year on year, while a year earlier in June prices fell by 0.7%  with a y-o-y growth of 4.9% . Moreover, only eggs fell in price by  5.1% in June, and by 19.2% year on year, against the decline in  prices in June 2019 by 1.3% with a y-o-y increase of 37.6%.

Sugar and granulated sugar fell in price by 0.9% in June, and in  annual terms- by 5.3%.  Tea, coffee, cocoa, soft drinks, fish and  seafood, meat products fell in price in June 2020 by 0.4-0.1%.   Fruits rose in June by 4.1%, and in annual terms - by 14.2%.  Alcohol  and cigarettes rose in June by 0.3% and 0.4%, respectively, with an  annual increase in prices by 12% and 8.8%, respectively.  In the  non-food market, the price of gasoline in June decreased by 0.2%, and  for diesel fuel - by 1.7%, compared with June 2019, gasoline and  diesel fuel fell by 31.8% and 33%, respectively, and for the first  half of 2020 - respectively by 28.8% and 27.8%. In June, clothes fell  by 2%, furniture, carpets and floor coverings - by 1%, large  household appliances - by 0.7%, shoes and medicines - by 0.5%,  building materials - 0.4%, fuel and lubricants materials - by 0.2%,  dishes and kitchen utensils - by 0.1%. At the same time, jewelry rose  in price in June- by 0.8%, household appliances and horticultural  tools - by 0.5%, cleaning and detergents - by 0.4%.

The June increase in tariffs for services was the result of a rise in  prices for services of restaurants and hotels - by 1.7%, in the  organization of leisure and in the field of culture - by 1.5%, in the  field of transport - by 0.2%, with the same tariffs in education and  communications, and with the reduction in cost of services by 0.1% in  the field of healthcare and housing and communal services.

In June 2020, consumer price deflation by 1.4% was accompanied by a  strengthening of dram against the dollar by 0.6%, and in the first  half of the year against the backdrop of inflation of 1%, the  devaluation of dram against the dollar by 0.6% was observed (against  inflation by 0.1% and revaluation of dram by 1.3% a year earlier).  The estimated exchange rate of dram to dollar in June 2020 averaged  481.3 AMD / $ 1, which is 0.6% higher than the same month last year  (478.5 AMD/ $ 1).