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.
