Thursday, January 14 2021 15:59

ArmInfo. In the consumer market of Armenia in 2020, inflation was higher - 3.7%, than in 2019 - 0.7%. 

This was largely provoked by an increase in the prices of food  products (including alcohol and cigarettes) by 5.5% (versus 0.2% in  2019), and non-food products - by 3.4% (versus 1.4% in 2019) with an  increase in tariffs for services by 1.6% (versus 1.1% in 2019).   According to the Statistical Committee of the Republic of Armenia,  the average monthly increase in consumer prices in January-December  2020 amounted to 0.3%, against an increase of 0.1% in 2019.  In y-o-y  terms (January-December 2020 to January-December 2019), the consumer  market also recorded inflation - 1.2% (against inflation of 1.4% a  year ago), which was due to an increase in prices for food products  by 1.2% (against growth by 2.1% a year earlier), non-food products -  by 1% (against an increase of 1.5% a year earlier) and an increase in  tariffs for services by 1.4% (against an increase of 0.5% a year  earlier).

In December 2020 alone, consumer prices increased by 3.4%, mainly due  to the rise in prices for food products by 6.4%, with an increase in  prices for non-food products by 2.3% and an increase in tariffs for  services by 0.3% while in December 2019, the growth in consumer  prices was more modest - 1.3% and came from a rise in the price of  food products by 2.7% and an increase in tariffs for services by  0.2%, while the prices of non-food products remained unchanged. In  Yerevan, consumer prices increased by 3.3% in December 2020 (against  an increase of 1.1% in December 2019).

According to statistics, the December inflation in the food market is  mainly due to the rise in prices for vegetables and fruits by 35.9%  and 6.5%, respectively (with a y-o-y increase in fruit prices by  11.4% and an increase in vegetable prices by 2.8% - December 2020 to  December 2019).

Bakery products and cereals rose in price in y-o-y terms by 7.4%, and  in December - by 4.2%. Moreover, specifically bread and flour  increased in price by 7.3% and 10% per annum, respectively, while the  price went up by 6.1% and 2.2%, respectively in December alone.

Dairy products, cheese and eggs have risen in price in y-o-y terms in  total by 5.8%, and in December alone- by 3.6%. In particular, the  price of eggs jumped by 18.5% per annum, with a December rise in  price by 13.1%.

Fats of vegetable and animal origin increased in price by 13.1% in  y-o-y terms, and in December alone- by 6.1%. Moreover, sunflower oil  jumped in price by an average of 35.3% per annum, with a rise in cost  in December alone by 12.3%.

Sugar and granulated sugar rose in price on in y-o-y terms by 38.1%,  and in December - by 3%.  Meat products fell 0.6% in y-o-y terms, but  in December alone rose 1.1%. But poultry meat rose in price both in  y-o-y terms - by 6.5%, and in December - by 8.3%.  A miserable  December rise in prices was recorded for the following group of food  products: fish and seafood - by 0.1%, alcohol and cigarettes - by  0.2% (with an annual growth of 10.4%), soft drinks, coffee, tea,  cocoa - by 0.5%.

In the group of non-food products, gasoline and diesel fuel in  December increased in price by 4.1% and 2.9%, respectively, with an  annual decrease in price by 12.2-23%, and in January-December 2020,  compared to the same period of 2019, they decreased in price by 16,7%  and 20.5% respectively. Shoes rose in price in December by 0.8%, and  the highest increase in price was for jewelry - by 7.5%, fuels and  lubricants - by 3.5%, pharmaceutical goods and large household  appliances - by 3.2%, small household electrical appliances - by  2.6%.

The December increase in tariffs for services provoked an increase in  the cost of services in the field of transport - by 3% (with an  annual rise in price by 4.7%), in the healthcare sector - by 1.2%  (with an annual rise in price of 3.9%), in the field of entertainment  and recreation - by 1.2% (with an annual reduction in price by 0.7%),  in the field of communications - by 0.1% (with an annual constant).  In the field of education, the December invariability of tariffs for  services was accompanied by their annual rise in price by 2%, and in  the restaurant and hotel business, the December decline in prices for  services by 0.1% was accompanied by an annual rise in prices by 1.8%.

It should be noted that inflation of 0.7% was recorded in the  consumer market of Armenia in 2019, against 1.8% inflation in 2018.  This was largely provoked by an increase in prices for non-food  products (including alcohol and cigarettes) by 1.4%, rather than food  products - by 0.2%, with an increase in tariffs for services by 1.1%.  In y-o-y terms (January-December 2019 to January-December 2018), the  consumer market also recorded inflation - 1.4% (against inflation of  2.5% a year ago), which was due to a rise in prices for food products  by 2.1% (against growth by 2.5% a year earlier), non-food products -  by 1.5% (against an increase of 4.5% a year earlier) and an increase  in tariffs for services by 0.5% (against an increase of 1.2% a year  earlier). In December 2019 alone, consumer prices increased by 1.3%  due to a rise in prices for food products by 2.7% and an increase in  tariffs for services by 0.2%, while the prices of non-food products  remained unchanged. In Yerevan, consumer prices increased by 1.1% in  December 2019, against an increase of 1.6% in December 2018. The  average monthly increase in consumer prices in January- December 2019  amounted to 0.1%, repeating the dynamics of a year ago.