Wednesday, August 5 2020 13:59

ArmInfo.Deflation of 1.1% was recorded in the consumer market of Armenia in January-July 2020, against 1.8% deflation in the same period of 2019. According to the RA Statistical Committee, this was provoked by a decrease in prices  for food products (including alcohol and cigarettes) by 2.7% and  non-food products by 1.2%, while tariffs for services increased by  0.9%.

In y-o-y terms (compared to January-July 2019), the consumer  market recorded inflation of 0.7% (against inflation of 1.9% a year  ago), which was facilitated by an increase in the price of food  products by 0.3%, non-food products - by 0 , 8% and an increase in  tariffs for services by 1.3%. The average monthly decline in food  prices in January-July 2020 amounted to 0.15%, against a 0.27%  decline a year earlier.

In July 2020 against July 2019, consumer prices increased by 1.5% due  to an increase in the price of food products by 2.1% and an increase  in tariffs for services by 1.4%, while the prices of non-food  products remained unchanged. In July alone, deflation of 2.1% was  recorded against the background of a decrease in prices for food  products by 4.9% and non-food products - by 0.3%, with a 0.3%  increase in tariffs for services. In Yerevan consumer prices  decreased by 1.9% in July 2020 similar to the July trend a year ago.   In the food market, fruits and vegetables in total fell in price by  19.13% in July 2020, and since their total share in the consumer  basket is 10.32%, the impact on consumer prices downward was 2  percentage points.  In particular, vegetables fell in price both in  July - by 25.2%, and in y-o-y terms - by 5.4%, while prices for  fruits, having decreased by 10.3% in July, underwent a y-o-y growth  by 33.6%.

Alcohol and cigarettes rose in price by 0.2% in July, with a y-o-y  rise of 10.6%.

In July, gasoline and diesel fuel prices went up - by 3.9% and 3.6%,  respectively, but in y-o-y terms (July 2020 to July 2019), gasoline  prices decreased by 29.1% and diesel fuel by 30.6%, and in January -  July 2020, gasoline and diesel fuel fell in price by 26% and 25.2%,  respectively.   In July 2020, the most noticeable increase in tariffs for services  was recorded in the field of recreation - by 6.4%, and in the hotel  business - by 4.6%.  In July 2020, consumer price deflation by 2.1%  was accompanied by a 0.7% devaluation of the dram against the dollar,  and in January-July against the background of 1.9% deflation, there  was a 1.3% devaluation of the dram against the dollar (against a  deflation of 1,8% and AMD revaluation by 1.7% in January-July 2019).  The calculated exchange rate of the dram to the dollar in July 2020  averaged 484.6 AMD / $ 1, which is 1.7% higher than the level of the  same month last year (476.5AMD/$ 1).  To note for comparison, that a  year earlier, in January-July 2019, a 1.8% deflation was recorded in  the consumer market in Armenia due to the cheapening of food products  by 4.5%, with a rise in prices for non- food products by 0.2% and an  increase in tariffs for services by 0.6%. The average monthly decline  in food prices in January-July 2019 amounted to 0.27%, almost  repeating the trend of the same period in 2018 (a decline of 0.2%).  Y-o-y inflation (January-July 2019 against January-July 2018)  amounted to 1.7% due to the rise in prices for food products by 2.8%,  non-food products - by 1.9% and an increase in tariffs for services  by 0.2%. In July 2019 alone, a deflation of 1.9% was recorded against  the background of a decrease in prices for food products by 4.2% and  non-food products - by 0.4%, with a 0.2% increase in tariffs for  services. In Yerevan, consumer prices decreased by 1.9% in July 2019,  against a decline of 1.1% a year earlier. The dram exchange rate  strengthened in July 2019 against the dollar by 0.4%, in January-  July 2019 - by 1.7% (against 0.4% revaluation in the same period of  2018), and in July 2019 compared with July 2018, the dram has  revaluated by 1% against the dollar.