Friday, May 10 2024 13:19
Karina Melikyan

Food products, services cause of 0.8% inflation in Jan-Apr 2024 

Food products, services cause of 0.8% inflation in Jan-Apr 2024 

ArmInfo.In Armenia, four-month inflation of 0.8% was triggered by food and services, which rose in  price by 1.8% and 0.9%, respectively, while non-food products fell in price by 1.6%. This is not much different from last year's picture, when in January-April 2023 inflation of 0.9% came from an increase in  food prices by 1.6% and an increase in the price of services by 1.1%, with a decrease in the price of non-food goods by 1%. This is evidenced by the data of the RA Statistical Committee.

In January-April 2024, compared to January-April 2023, deflation in  the consumer market amounted to 1.1% (against inflation of 6.2% a  year earlier), formed as a result of a reduction in the price of food  by 4.5%, with an increase in the price of non-food products by 0 .2%  and an increase in tariffs for services by 2.9%, while a year ago  food prices rose (by 6.5%), and non-food goods and services increased  in price more noticeably (by 4.7% and 6.5% respectively) than now. In  January-April 2024, compared to January- April 2023, deflation in the  consumer market amounted to 1.1% (against inflation of 6.2% a year  earlier), formed as a result of a reduction in the price of food by  4.5%, with an increase in the price of non-food products by 0 .2% and  an increase in tariffs for services by 2.9%, while a year ago food  prices rose (by 6.5%), and non-food goods and services increased in  price more noticeably (by 4.7% and 6.5% respectively) than now.

In April 2024, compared to April 2023, deflation was recorded at  0.7%, against inflation of 3.2% in April 2023 compared to April 2022.  And this deflation was the result of a reduction in the price of food  by 3.3% and non-food products by 0.5%, with an increase in tariffs  for services by 2.8%. As a comparison, we note that a year ago in  April 2023, compared to April 2022, prices for food and non-food  products were still rising by 1.8% and 2.7%, respectively, and  services showed a more noticeable increase in price by 5.2 %.

On a monthly basis, March deflationary 0.2% gave way to April  inflationary 0.6% (against inflation of 0.1% in April 2023), which  was the result of a reversal in food prices towards growth by 1.3%  (after the March decline by 0.2%) and an increase in tariffs for  services by 0.2% (after remaining unchanged in March), while the  decline in prices for non-food products slowed to 0.3% (from 0.6% in  March). A year ago in April, there was an increase in prices for food  and non-food products by 0.2% and 0.1%, respectively, while tariffs  for services decreased by 0.1%.

The most noticeable annual reduction in price (April 2024 to April  2023) in the food market was noted for the following food products:  margarine - by 21.9%, sunflower oil - by 20.8%, buckwheat - by 18.9%,  flour - by 11 .8%, peas - by 11.4%, pasta by 11%, cheeses - by 8.2%,  butter - by 8.1%, spelt - by 7.9%, trout - by 7.5%, crushed wheat  (bulgur) - by 6.1%. Vegetables and fruits also fell in price on an  annual basis by 8.2% and 5%, respectively, while in April alone they  increased in price by 9.2% and 3.8%. Sugar, poultry meat, beef,  chocolate and cocoa fell in price over the year by 2.5-4.6%.

However, in the food market there are food products that have risen  in price over the year: coffee - by 3.3%, eggs - by 2.8%, pork and  lamb - by the same 0.8%, milk - by 0.7%.

Among alcoholic beverages, wines fell in price on an annual basis -  by 1.1%, while vodka and beer, on the contrary, increased in price by  9.7% and 4.6%. Bottled mineral or spring water increased in price on  an annual basis by 0.7%. Cigarettes increased in price by 7.6% over  the year.

Jewelry prices have increased in the non-food market over the year -  by 7.3%, large and small household electrical appliances - by  3.1-4.5%, furniture - by 3.1%, dishes and kitchen utensils - by 1.4%,  shoes - by 0.7%. Gasoline and diesel fuel rose in price over the year  by 38% and 4.9%, respectively, while in just 4 months of this year  their prices decreased by 6.5% and 4.4%.

In the service sector, the most significant increase in price over  the year was for services related to personal transport - by 3 times,  complex services for organizing recreation - by 21.5%, services for  sporting events and tourism - by 11.5%, services in the field of  transport - by 7. 2%, repair of furniture and household appliances -  by 5.1-5.5%, services in the field of education - by 4.8%.

Services in the hotel business also increased in price - by 1.5%,  hairdressing and spa salons - by 3.4%, and medical services increased  in price by 2.3%. Dry cleaning and clothing repair services, as well  as clothing rental salons, increased in price over the year by 2.4%.  Apartment renovation services increased in price by 2.5% over the  year. Financial services rose in price on an annual basis by 12.2%.  April inflation in the consumer market (0.6%) was accompanied by a  revaluation of the dram against the dollar by 2.4%, more pronounced  repeating last year's picture, when low inflation of 0.1% and a less  noticeable revaluation of the dram against the dollar by 0.2% were  recorded in April.

In January-April 2024, inflation in the consumer market (0.8%) was  accompanied by a revaluation of the dram against the dollar by 3.3%,  while a year earlier, with almost the same inflation of 0.9%, a more  restrained revaluation of the dram against the dollar was observed by  1 .7%. In April 2024 versus April 2023, the dram weakened against the  dollar by 0.8%, amounting to 391 dr/$1 with deflation of 0.7%,  against 387.7 dr/$1 (with an annual revaluation of 17.7%) with annual  inflation of 3.2% in April 2023.   

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