No downward slide in food prices expected in Armenia
20.10.2017,
13:28
Prices for foods are unlikely to go down soon in Armenia, Karen Chilingaryan, head of the Consumers Consulting Centre, told journalists on Friday.
YEREVAN, October 20. /ARKA/. Prices for foods are unlikely to go down soon in Armenia, Karen Chilingaryan, head of the Consumers Consulting Centre, told journalists on Friday.
According to official reports, a 0.6% year-on-year inflation was recorded in the country in Jan-Sept 2017. Prices for foods, alcoholic drinks and tobacco products rose 3.8%, while prices for nonfoods and services went 2.6% and 1.4% down respectively.
When prices at the world market go down, the Armenian market reacted to that not immediately, Chilingaryan said. “The thing is that importers buy certain volumes of commodities, for example butter, at a particular price and, as they explained, they can’t lower prices for this batch of goods – otherwise, they will sustain losses.”
Chilingaryan also said that, as a rule, prices for particular products go up ahead of every New Year.
In his words, increase in butter prices is due to increase at the international market, since the local market reacts to increase very quickly.
“Price for butter in the countries from which Armenia imports it soared in the last three months,” he said. “According to official figures, the price for one kilogram of butter was €6 on July 1, €7.10 in September and €7.45 in October. This means that butter prices have leapt 25% over a period between July and October 2017, and compared with the same period a year earlier, they mounted 80 to 100 percent.”
As for local butter producers, Chilingaryan said that they, following the example to other countries, raised butter prices as well instead of buying their products at lower prices – that would be more beneficial to them.
The National Statistical Service says butter prices in Armenia grew 18.7% in September 2017, compared with the same month a year before and meat prices rose 6.5%.
Year-on-year inflation in September stood at 1%. --0----
According to official reports, a 0.6% year-on-year inflation was recorded in the country in Jan-Sept 2017. Prices for foods, alcoholic drinks and tobacco products rose 3.8%, while prices for nonfoods and services went 2.6% and 1.4% down respectively.
When prices at the world market go down, the Armenian market reacted to that not immediately, Chilingaryan said. “The thing is that importers buy certain volumes of commodities, for example butter, at a particular price and, as they explained, they can’t lower prices for this batch of goods – otherwise, they will sustain losses.”
Chilingaryan also said that, as a rule, prices for particular products go up ahead of every New Year.
In his words, increase in butter prices is due to increase at the international market, since the local market reacts to increase very quickly.
“Price for butter in the countries from which Armenia imports it soared in the last three months,” he said. “According to official figures, the price for one kilogram of butter was €6 on July 1, €7.10 in September and €7.45 in October. This means that butter prices have leapt 25% over a period between July and October 2017, and compared with the same period a year earlier, they mounted 80 to 100 percent.”
As for local butter producers, Chilingaryan said that they, following the example to other countries, raised butter prices as well instead of buying their products at lower prices – that would be more beneficial to them.
The National Statistical Service says butter prices in Armenia grew 18.7% in September 2017, compared with the same month a year before and meat prices rose 6.5%.
Year-on-year inflation in September stood at 1%. --0----
