Consumer prices in Armenia to go up in January
05.12.2017,
11:41
Prices for a number of primary consumption goods will jump in one month because the Eurasian Economic Union’s customs duty rates will come into force on January 1, 2018.
YEREVAN, December 5. /ARKA/. Prices for a number of primary consumption goods will jump in one month because the Eurasian Economic Union’s customs duty rates will come into force on January 1, 2018.
This means that commodities imported from countries that are not the Eurasian Economic Union members will become more expensive.
Prices for all essential products, such as chicken meat, milk, butter, cooking oil and tea, which are brought into Armenia from such countries will be raised.
Hovhannes Azizyan, deputy economic development and investments minister, said in an interview with Radio Azatutyun that increase in prices will be insignificant.
“Customs duties will be raised by 1 to 2 percent, and it means that chicken meat price will go 4% up, compared with 2017, and cooking oil price will rise 2%,” he said.
He said that this step is taken in a bid to spur domestic producers in the Eurasian Economic Union member countries.
Azizyan thinks that this step will create new jobs and open additional opportunities.
In his words, people who used to buy affordable imported chicken will no longer be able to enjoy these cheap prices and will be left with no option but to consume the meat produced in the Eurasia Economic Union space, since prices will be no difference in prices.
He didn’t rule out some decrease in prices for domestic products, if sales increase.
Speaking about butter, which surged 40% recently, the deputy minister said that the population can consume Russian product instead of Zealand butter.
As for inflation, he again finds it not so high. Asked what steps will be taken to cushion inflation effect, Azizyan said that new jobs will be created – the more people work the more products they consume.
Artak Manukyan, an economist, thinks otherwise – he is convinced that this is a false method to spur domestic industries and that it has no future.
There are many instruments for spurring domestic industries – flexible loans, better terms for secured loans etc.
Speaking about the imminent inflation, the expert said that the Eurasian Economic Union customs rates will impact not only consumer prices, but also excise taxes – they will drive prices for cigarettes, vodka and fuel up.
Some provisions of the Tax Code will come into force in January, and this will affect prices as well.
The deputy minister, however, insists on being right saying that new customs rates will have no significant impacts on commodities prices and that they will increase by 1 to 2 percent. --0---
This means that commodities imported from countries that are not the Eurasian Economic Union members will become more expensive.
Prices for all essential products, such as chicken meat, milk, butter, cooking oil and tea, which are brought into Armenia from such countries will be raised.
Hovhannes Azizyan, deputy economic development and investments minister, said in an interview with Radio Azatutyun that increase in prices will be insignificant.
“Customs duties will be raised by 1 to 2 percent, and it means that chicken meat price will go 4% up, compared with 2017, and cooking oil price will rise 2%,” he said.
He said that this step is taken in a bid to spur domestic producers in the Eurasian Economic Union member countries.
Azizyan thinks that this step will create new jobs and open additional opportunities.
In his words, people who used to buy affordable imported chicken will no longer be able to enjoy these cheap prices and will be left with no option but to consume the meat produced in the Eurasia Economic Union space, since prices will be no difference in prices.
He didn’t rule out some decrease in prices for domestic products, if sales increase.
Speaking about butter, which surged 40% recently, the deputy minister said that the population can consume Russian product instead of Zealand butter.
As for inflation, he again finds it not so high. Asked what steps will be taken to cushion inflation effect, Azizyan said that new jobs will be created – the more people work the more products they consume.
Artak Manukyan, an economist, thinks otherwise – he is convinced that this is a false method to spur domestic industries and that it has no future.
There are many instruments for spurring domestic industries – flexible loans, better terms for secured loans etc.
Speaking about the imminent inflation, the expert said that the Eurasian Economic Union customs rates will impact not only consumer prices, but also excise taxes – they will drive prices for cigarettes, vodka and fuel up.
Some provisions of the Tax Code will come into force in January, and this will affect prices as well.
The deputy minister, however, insists on being right saying that new customs rates will have no significant impacts on commodities prices and that they will increase by 1 to 2 percent. --0---
