Monday, October 9 2017 17:32
Naira Badalian

Expert: prices continue to grow in food products and not only

Expert: prices continue to grow in food products and not only

ArmInfo. The head of the Consumer Consulting Center Karen Chilingaryan predicts a further rise in the price of food.

According to Chilingaryan, growth in price of butter in Armenia by 30-40% is an objective reaction to the price increase in the international market. "It is noteworthy that in the case of fluctuations in prices on the world market in the direction of their increase, the Armenian market reacts immediately, but with their decrease, changes are observed after 6-8 months," the expert noted.

Today's growth  in meat prices, according to the expert, is the result of weather conditions, more precisely - a drought, which led to higher prices for feed and a reduction in the number of livestock. Against this background, there was a marked upward trend in exports, which may be good in terms of increasing exports, but bad for the local consumer. As a result of the increase in demand, the market reacted naturally to higher prices, he noted.

At the same time, as the expert stated, the current level of prices will not remain even in the context of the next 3 months. "Butter in the international market has risen in price not by 30%, but by 50-100%," he noted. Thus, importers will continue to raise prices for the goods. In addition, the expert urged not to discount the fact that since January 1, in connection with the full transition to the new rules of customs clearance of the Unified Energy System, further price increases are expected in Armenia.

To note, since 2018, the exemptions that were established upon accession to the EEU, which prevented the increase of customs duties, and therefore the rise in price of 759 items of essential goods, will not be effective. Even before Armenia's accession to the EEU, local experts stated the inevitability of a rise in price of almost all goods. According to the analysis, it was noted that 60% of the goods rates in the Customs Union are higher than in Armenia. Only in 14.5% of cases the rates in Armenia are higher. That is, after joining the CU, it was forecasted a rise in price of at least 7,000 items of goods. This was predicted by a 5% rise in the price of gasoline, drugs for which a zero rate is set in Armenia, and in the TS it is 8- 12.5%. Poultry rates in Armenia are 10%, in the TC - 25%, on pork the ratio is again 10 to 15. It is also expected to increase the price of secondary market cars, customs duties for which in the TC are from 25% to 50%. In Armenia, the rate is now 10%. It was noted about the problems with the import of agricultural products, for which the customs rate in the amount of 0-10% is now established in Armenia, and in the TC - 3.5-80%.


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