Deflation in May 2016 totals 0.7% amid 2.1% year-on-year deflation in Armenia

ArmInfo. Deflation in the consumer market of Armenia totaled 0.7% in May 2016, as foodstuffs fall in price 1% (or 0.9% inclusive of alcohol and tobacco), amid 0,6% decrease of non-consumer prices and 0.3% decrease of service tariffs. In May 2016 as compared to May 2015, deflation in the consumer market totaled 2.1% amid 4.1% decline of food prices and 3.5% decline on non-food prices, and 2.2% increase in service tariffs. The National Statistical Service of Armenia told ArmInfo. In Jan-May 2016, the consumer price index totaled 99.4%: food prices (inclusive of alcohol and tobacco) - 99.9%, non-foods 97.8%, and service tariffs - 100%. As compared to Jan-May 2015, these indicators were as follows:  98.4%, 95.6%, 98.8% and 102.9%. The average monthly decline of consumer prices in Jan-May 2016 totaled 0.1% versus 0.3% growth a year ago. 

Deflation in May 2016 totaled 1% as prices of vegetables and eggs fell 11.4%-7.1%. In May 2016 versus May 2015 vegetable prices increased 2.7%. In May alone, the prices of vegetables fell 7.1%.  The average egg price fell 18.4% year-on-year and 11.4% in May alone.  Dairy products fell in price 4.9% y-o-y and 0.5% in May alone. Vegetable oil and animal fat, sugar, coffee, tea, and cocoa prices fell 0.3%-0.2% in May.  Fruit prices fell 22.3% y-o-y and increased 3.4% in May alone. Fish products fell in price 3.3% y-o-y, but increased 0.8% in May alone.  Prices of bakery products fell 3.1% y-o-y but grew 0.4% for Maul alone. Meat product prices fell 3.9% y-o-y but increased 0.2% in May alone.   Alcohol and tobacco prices increased 0.1% in May, as cigarette prices increased 0.5%, but the prices of flour and soft drinks were left unchanged.

The prices of non-foods fell 0.6% in May, as prices of art works fell 2.2%, sanitary products - 2.1%,  clothing and knitted items fell 1.7%, household chemicals - 1.4%, cosmetics - 1.3%, fuel -0.9%, textile and jewelry -0.6% each, medicines - 0.3%, carpets - 0.2%, and construction materials - 0.1%. In May the prices of the following products increased:  gardening items - 0.2%, shoes - 0.5%, household equipment - 1.1%, furniture -1.2%. The prices of kitchen appliances and office supplies were left unchanged. Petrol prices increased 0.5% in May amid 2.9% decline of diesel prices. Both the products fell in prices y-o-y (11.6% and 16.8% respectively) and in Jan-May 2016 (11% and 17,6% respectively). 

Service tariffs decreased 0.3% in May, as prices in the tourism sector fell 3%, culture sector - 1.3%, public catering - 0.3% and housing and communal sector - 0.8%.  Medical services increased in price 0.5%, transport prices increased 0.5% (as air ticket prices increased 1.6%), legal and banking services increased in price 0.1%, while education and communication sectors saw no price changes.

According to the statistical data, the inflation in summer season will be low. Actually, the target of 4% (1.5%) inflation will be outstripped.

For comparison, deflation in May 2015 totaled 0.5% (0.8% in May 2014), as food prices fell 1.1% (inclusive of alcohol and tobacco), non-foods and service prices increased 1.1%.