Y-O-Y inflation in Armenia, in March 2022 reached 7.4% due to  significant rise in food prices

ArmInfo.In the consumer market of Armenia in Q1 2022, 3.5% inflation was recorded against last year's 3.8%. Inflation in Q1 2022 was mainly driven by a 5.8% increase in  food prices and a 2.3% increase in service tariffs, while non-food  prices rose by 1.3%.

According to the RA Statistical Committee, inflation in March of this  year alone, was 1.8% (versus inflationary 1% a year earlier in the  same month). In particular, inflation in March was provoked by a 2.2%  increase in food prices and a 1.7% increase in tariffs for services,  while prices for non-food products increased by 1%. Consumer prices  in Yerevan in March increased by 1.9%, against an increase of 1.1% in  March 2021.

In Q1 2022, compared to the same period in 2021,  7% inflation was  recorded, against 5.2% inflationary a year earlier. Moreover, food  products rose in price by 11.7% year-on-year, non-food products by  5.5%, while tariffs for services increased by 2.5%.

In March 2022 to March 2021, 7.4% inflation was recorded (against  inflation of 5.8% in March 2021 to March 2020), provoked by a rise in  prices for food products by 12.3%, non-food products by 4.8% and an  increase in tariffs for services by 3.3%.

In the food market, vegetables sharply increased in price in y-o-y  terms by 40.8%, with a rise in price by 2.4% in March. And fruits, on  the contrary, fell in price in y-o-y terms by 3.8%, while in March  alone they rose in price by 3%. Fish and seafood sharply increased in  price in y-o-y terms by 30.2%, and in March alone rose in price by  0.6%.

Groats - buckwheat, lentils, rice and spelt (achar) rose in price in  y-o-y terms by 37.2%, 28%, 16.8% and 16.2%, respectively, and in  March alone by 8.4%, 6.2%, 4.6% and 4.1%.  Sugar and granulated sugar  sharply increased in price in y-o-y terms by 24.7%, while in March  they rose in price by 7.9%.

Pasta, bread and flour  increased in price in y-o-y terms by 18.2%,  12.3% and 10.8%, respectively, and in March alone- by 8.1%, 3% and  3.8%.

Bakery products and cereals rose in price by a total of 13.3%, and in  March alone - by 3.5%.

Coffee, tea and cocoa rose in price in y-o-y terms by 11.2%, with a  rise in price in March by 2.4%.

Meat products rose in price in y-o-y terms by 9.7%, and in March   alone- by 0.9%. In particular, the y-o-y growth in prices for beef  was 9.1%, mutton - 7.5%, poultry meat - 7.4%, and in March alone,  these products rose in price by 1.3%, 1.8% and 1,5% respectively.

Butter and milk rose in price in y-o-y terms by 10.7% and 9.5%,  respectively,  in March alone  - by 4.1% and 2.1%.

And oils and fats grew in price in y-o-y terms by 7.8%, with rise in  price for March by 5%. 

Dairy products, cheese and eggs rose in price in y-o-y terms by 7.5%,  and in March alone - by 0.8%.

Cigarettes rose in price in y-o-y terms by 8.8%, and in March alone-  by 1.6%.

Vodka, beer and wine rose in price in y-o-y terms by 8.7%, 6% and  1.1%, respectively, and in March alone- by 1.7%, 2.7% and 0.3%.

Bottled mineral water rose in price in y-o-y terms by 6.6%, and in  March alone- by 1.5%.

In the non-food market, the most significant y-o-y price increase in  March was recorded for small household electrical appliances - by  9.5%, large household appliances - by 8.2%, shoes - by 7.8%, clothes  - by 7%, kitchen utensils - by 6.5%, furniture - by 6.1%, fuel and  lubricants - by 6%, and jewelry - by 5.3%.  The reduction in prices  in y-o-y terms was recorded only for pharmaceutical products (by  1.8%) and amateur gardening equipment (by 4.5%, with a sharp increase  in March by 10%).

Gasoline and diesel fuel rose in March by 3.3% and 7.6%,  respectively, with a y-o-y sharp increase in prices by 25.4% and  39.9%. In q12022, a 0.2% reduction in the price of gasoline was  accompanied by a 9.8% increase in prices for diesel fuel.

Tariffs for services in y-o-y terms increased most significantly in  the field of postal communications - by 27.6%, and complex services  for organizing recreation - by 24.6%. And only in the field of  transport, a y-o- y reduction in the prices for services by 1.6% was  recorded, but taking into account the rise in price of car insurance  (due to the increase in the cost of the CMPTL policy from February 7  of this year, ed. note), an increase of 7.3 % was recorded in this  sector.

March inflation of 1.8% was accompanied by a devaluation of the dram  against the dollar by 3.5%, and in Q1 2022, with inflation of 3.5%,  the dram devaluated against the dollar by 2.4%. As a comparison, we  note that a year earlier, in Q1 2021, inflation in the consumer  market of 3.8% was accompanied by a devaluation of the dram against  the dollar by 1.7%. The estimated exchange rate of the dram against  the dollar in March 2022 averaged 497 AMD/$1, having revaluated in  y-o-y terms by 5.8% (from last year's 527.7 AMD/$1 in March 2021).