Thursday, July 6 2023 18:18

ArmInfo. June's 0.5% deflation in  Armenia was caused by a 4.1% decrease in food prices, an almost  identical increase in service tariffs by 3.9% and a slight increase  in non- food prices by 0.3%. The most noticeable fall in food prices  was for vegetable oil - by 39.2%, vegetables - by 28.1%, buckwheat -  by 23.1%, lentils - by 20.7%, flour - by 16.3%, peas - by 12.6%,  margarine - by 10.6%, pork - by 10.1%, in parallel with which the  prices of eggs have risen significantly - by 21.7% and beef - by 9%.  This is evidenced by the data of the RA Statistical Committee,  according to which, a year ago in June, 10.3% inflation was recorded  due to the increase in the prices of food and non-food products by  16.1-7.5% and the increase in service tariffs by 5.3%.

In addition to these food products, prices also fell in y-o-y terms  (June 2023 to June 2022) for: rice - by 7.9%, pasta - by 7.3%, fruits  - by 6.5%, bread - by 5.4%, trout - by 4.6%, butter - by 4.4%, spelt  - by 4.2%, hachar - by 3%, sugar and granulated sugar - by 2.8%,  beans - by 2.6%, lamb - by 1.6%, poultry meat - by 0.1%. And besides  eggs and beef, milk also rose in price - by 4.7% and cheese - by  4.4%. Cigarettes in June increased in price by 10.1% per annum.  The  weighted average deflation in the group of fruits and vegetables  amounted to 13.16% in June, while vegetables fell in price by 23.1%  over the month, and fruits - by a meager 0.3%. And this group of  products, having a share of 9.38% in the consumer basket, had a  downward effect on inflation by only 1.21 percentage points.

In H1 2023, a 2.3% deflation was recorded (against 6.3% inflation a  year earlier), which was provoked by a reduction in the price of food  and non-food products by 5% and 2%, with an increase in tariffs for  services by 1.2%. As a comparison, we note that in H1 2022, the  opposite dynamic was observed - inflation of 6.3% provoked by an  increase in the price of food products by 8.9%, non-food - by 4.6%,  and an increase in tariffs for services by 4.4%. According to  statistics, the average monthly decline in consumer prices amounted  to 0.4% in H1 2023, against a 1% increase a year earlier.  In y-o-y  terms (H1 2023 to H1 2022), inflation in the consumer market amounted  to 4.2% (versus 8.1% inflation per annum earlier), which was equally  facilitated by the rise in prices for food and non-food products - by  3.4-3.3 % with an increase in tariffs for services by 5.7%, while a  year earlier inflation mainly was caused by a rise in prices for food  products by 13.1% and to a slightly lesser extent from non- food  products - by 6.1% at 3.5 % increase in tariffs for services.

In June 2023 alone, a deflation of 1.4% was recorded (against a  deflation of 1.8% in May this year and an inflation of 0.3% in June  2022), provoked to a greater extent by a 3.1% reduction in the cost  of food products with a meager 0.1% decline in prices for non-food  products and the same reduction in tariffs for services. As a  comparison, we note that in June 2022, an inflation of 0.3% was  observed on the consumer market, due to a rise in the price of food  products by 0.7% and an increase in tariffs for services by 0.6%,  while the price of non-food products fell by 0.1% alone. In Yerevan,  consumer prices decreased by 1.4% in June against an increase of 0.3%  in June 2022.

In the non-food market in y-o-y terms (June 2023 to June 2022),  disposable household goods more noticeably increased in price - by  8.5%, dishes and kitchen utensils - by 7.6%, shoes - by 5.9%,  furniture - by 4.8%, clothes - by 4.1%, large and small household  appliances - by 3.4-4.5%. Prices for fuels and lubricants fell by  9.4% and jewelery by 5.4% year-on-year. In particular, gasoline and  diesel fuel decreased in price year-on-year (June 2023 to June 2022)  by 22.7% and 29.8%, respectively, and in June alone, gasoline rose in  price by 10.5% while diesel fuel became cheaper by 8.9%. And in H1  2023, both gasoline and diesel fuel fell in price by 7.3% and 17.7%,  while in H1 2022, the price of diesel fuel increased by 33.3%, while  the price of gasoline rose by 2.1% alone.

As for tariffs for services, a tangible y-o-y growth was recorded in  the areas of organizing sports and entertainment events - by 16.7%  (with an increase of 10.4% in June), complex services for organizing  recreation - by 9.1%, in the field of transport - by 9.6%, in the  housing repair segment - by 7.6%, in the service sector - by 6.6%  (medical services alone- by 6%), in the hotel business - by 5.2%.  Dry-cleaning and clothing repair services, as well as clothing rental  salons also rose in price by 8.5% year-on-year, and shoe repair  services - by 12.9%. But the tariffs for financial services increased  most significantly in y-o-y terms - by 22.7%. And the y-o-y reduction  in tariffs (by 9.8%) was recorded only for vehicle insurance, which  is due to the transition from April 2023 to the liberalization of  prices for CMPTL.

The June deflation of 1.4% in the revaluation of the dram against the  dollar by 7.4% in June 2022). In H1 2023, deflation in the consumer  market of 2.3% was accompanied by a 2% revaluation of the dram  against the dollar (against an inflation of 6.3% and a revaluation of  the dram against the dollar by 12.9% a year earlier). In June 2023,  by June 2022, the dram appreciated against the dollar by 8.5% - up to  386.70 AMD / $ 1 with a deflation of 0.5% (against 422.70 AMD / $ 1 a  year earlier, with a revaluation of 17.6%, with inflation at 10.3%).