ArmInfo. YOY inflation in Armenia decreased from 1.3% to 0.3% in May, due to cheap prices of the most demanded food products. Thus, in May 2024 compared to May 2023, food products decreased in price by 1.1%, almost repeating last year's decline of 1.2%. Moreover, butter, buckwheat, pasta, flour, cereals, cheeses, fish, sugar, and meat fell in price most noticeably.
Services continued to rise in price, only slowing down in pace from 4.7% to 2.3%, but tariffs for car repairs/maintenance and recreation increased significantly.
According to the data of the Statistical Committee of RA, in particular, in May 2024 compared to May 2023, the price of the following products in the market of food products decreased significantly: margarine - by 22.9%, buckwheat - by 20.1%, sunflower oil - by 18.6%, pasta - by 9.1%, flour - by 8.5%, spelt (achar) - by 8.4%, cheeses - by 7.4%, trout - by 6.7%, butter - by 6.3%, sugar - by 4.8%, bulgur and dzavar (crushed and whole wheat) - by 2.8-5.9%, poultry, pork and beef - 2.7-4.6%, cocoa and chocolate - by 3- 3.5%.
The prices of the following products have decreased less noticeably: fruits by 1.9%, confectionery by 1.4%, bread by 1.1% and cottage cheese by 0.1%. At the same time, the prices of eggs increased by 6.8%, coffee by 5.6%, vegetables by 4.4%, ice cream by 3.9%, lentils by 1.6%, tea by 1.2%, beans by 1%, lamb by 1%, sour cream by 0.5%, milk by 0.3% and matsoni by 0.2%. The average weighted deflation in the group of vegetables and fruits amounted to 5.91% in May, and this group of products, having a share of 9.04% in the consumer basket, had a downward impact on inflation by 0.51 percentage points.
In May, alcoholic beverages increased in price by 7.6% y/y, and cigarettes - by 5.4% y/y. Moreover, of the alcohol, vodka increased in price most noticeably - by 10.7%, and beer slightly less - by 4.2%, while wines fell in price by 1.1%. Bottled mineral water increased in price by 0.6% y/y.
Zero inflation in the non-food market in May 2024 compared to May 2023 (against inflation of 1.1% a year earlier) was due to an almost equal increase in the price of some goods by 0.4-3.1% and a decrease in the price of others by 0.6-3.4%. Moreover, the most noticeable decrease in price was observed in disposable household goods - by 3.4%, medical equipment - by 2.7%, clothing - by 2.3%, building materials - by 2.1%, and of the goods that increased in price, the most significant increase was observed in the price of large and small household electrical appliances and equipment - by 3-3.1%, furniture - by 2.7%. Gasoline and diesel fuel increased in price by 39.1% and 6.2%, respectively, year-on-year, while in just 5 months of the current year their prices decreased by 6.2% and 4.3%. In the service sector, the most significant price increases over the year (May 2024 compared to May 2023) were for services related to personal transport - 3.1-fold, comprehensive recreation services - by 23.7%, sports events and tourism services - by 11.5%, transport services - by 6.1%, household appliance repair - by 5.5%, and higher education services - by 4.8%. Hotel business services also increased in price - by 1.8%, hairdressing and spa salons - by 3.6%, and medical services increased in price by 2.4%. Dry cleaning and clothing repair services, as well as clothing rental salons, increased in price by 3.6% over the year. Apartment renovation services increased in price by 2.4% over the year. Financial services increased in price by 3.2% year-on-year. For January-May 2024, zero inflation (versus deflationary 0.9% in the same period of 2023) was formed as a result of a 2% decrease in the price of non-food products, with a 0.5% increase in food prices and an increase in tariffs for services by 0.6%, while a year earlier there was an almost identical decrease in the price of food and non- food products - by 2% and 1.9%, respectively, with an increase in tariffs for services by 1.3%.
YOY Deflation of 0.8% (January-May 2024 to January-May 2023), was recorded (against inflation of 5.2% a year earlier), provoked by a 3.9% drop in food prices, with a 2.8% increase in services and 0.1% for non- food products, while a year earlier, prices for food and non-food products slowed in growth from 12.5-5.9% to 4.9-4%, and tariffs for services accelerated in growth from 3.2% to 6.1%. In January-May 2024, zero inflation was accompanied by a 4.1% strengthening of the dram against the US dollar, while a year earlier in the same period, 0.9% deflation and a 2% revaluation of the dram against the dollar were recorded. In May 2024 to May 2023, the dram devalued against the dollar by 0.3% - to 387.8 AMD/$1 with inflation at 0.3%, while a year earlier in May 2023 to May 2022, there was a revaluation of the dram against the dollar by 15.3% - to 386.6 AMD/$1 with inflation at 1.3%.
