Friday, August 11 2023 12:40

ArmInfo. Food prices are falling, while prices for services are rising in Armenia. Specifically, the prices  for potatoes, butter and fats, port, noodles, showed are markedly lower now, with a serious rise recorded in prices for rail transportation of cars, legal and accounting services, air transportation of passengers, financial services, renting, medical advice, recreation, integrated services. 

This July, 0.1% deflation was recorded in Armenia's consumer market  against 9.3% inflation last July because of a 2.6% reduction in food  prices (including prices for cigarettes and alcohol) and a 0.1%  reduction in nonfood prices, with a 3.7% rise in prices for services.  

This January-July, 3.3% deflation was recorded (4.9% inflation last  January-July), due to a 7.2% reduction in food prices and a 2%  reduction in nonfood prices, with a 1.4% rise in prices for services,  against a 4.7% rise in food prices, a 5.1% rise in nonfood prices and  a 4.9% rise in prices for services last January-July. 

3.6% inflation was recorded in Armenia's consumer market this  January-July against 8.3% inflation last January-July, due to a 2.6%  rise in food prices and a 2.8% rise in nonfood prices, with a 5.4%  rise in prices for services. In January-July 2022, a 13.1% rise in  food prices and a 6.4% in nonfood prices, with a 3.9% rise in prices  of services, was recorded as compared with January-July 2021. 

This July alone, 1% deflation was recorded (against 1.4% deflation  this June and 1.4% deflation last July) due to a 2.4% decline in food  prices (against 3.9% decline last July), with a 0.1% rise in nonfood  prices (against a 0.5% rise last July) and a 0.3% rise in prices for  services (against 0.5% rise last July). 

This July against last July, a 32.8% decline in potatoes price was  recorded, with a 22.3% decline in the prices for oil and butter, an  18% decline in the flour and cereals prices, a 12.7% decline in the  pork price, a 10.1% decline in the prices for noodles, a 6.3% decline  in vegetable prices, and a 5.7% decline in fruit prices. Some foods  recorded a price rise: eggs (19%), soft drinks (8.9%), confectionery  (7.8%), mineral and spring water (bottled) (5.3%), beef (4.5%), milk  (3.9%), olive oil (3.5%), coffee (2.2%).  

The vodka and liqueur recorded an 8.7% price rise, with a 3.2% rise  in the beer price and in a 10.7% rise in cigarette prices.

In the nonfood market, grooming products for pets recorded a 20.2%  price rise, irons, an 11.2% price rise, illuminating equipment, a  10.3% price rise, fixed telephones, a 9.5% price rise, dishes and  utensils, a 7.3% price rise, cleaning agents, a 6.6% price rise,  disposable household products, 6.4%, footwear, 6.2%, small household  appliances, 5.5%, furniture, 5%, clothing, 4.1%, jewelry, 3.9%. 

Petrol showed a 14.8% price reduction, with a 30.6% decline in the  price for diesel fuel against an 11.6% and a 43.2% price rise  respectively (after a 56.8% rise and a 43.6% rise in the  corresponding period of 2021). 

As regards prices for services, a 26.6% rise was recorded in rail  transportation of vehicles, a 25.8% rise in legal and accounting  services, air transportation of passengers, a 25.3% rise, (due to  higher prices for international charter flights), financial services,  an 18.4%, rents, a 116.3% rise, medical advice, a 12.2% rise,  integrated recreation services, a 12%rise, sports and tourism  activities, a 10.4% rise, restaurant and hotel services, a 5.5% price  rise, education, a 4.7% rise, museums and zoo, a 9.7% rise, apartment  renovation and cleaning services, a 5.7% and 4.9% price rise  respectively. 

This June, Armenia's Central Bank forecast 0.4% inflation (December  2023 against December 2022), with 8.3% inflation last year. Average  annual inflation will go down to 2.2%. The CBA forecasts a rise in  both the figures to 3.5% and 2.8% in 2024 and up to 3.9% and 3.7%  respectively in 2025. The inflation target is 4%. In 2019, 0.7%  inflation was recorded, much lower than the 4% inflation target.