By Albert Khachatryan

According to a report released by the Statistical Service of Armenia, the consumer price index was 107% this January-September as compared with last January-September.

If considered month by month, the consumer price index shows inconsistent trends. Specifically, it showed an upward trend this January-April (107% up to 108%). However, lower inflation rates – down to 107.3% - were registered from January to June.

If we compare the periods from January to July and from January to September, higher inflation rates were registered – from 107.4% up to 107.8%. This is evidence that prices do not show any downward trend.

Many experts think that the rise in prices for agricultural produce, particularly crop production, was the main cause of inflation. This year’s unfavorable weather destroyed a considerable part of fruit and vegetables, which caused a jump in market prices. Specifically, the fruit prices showed a 10% rise, prices for vegetables and potatoes rose by 22.6%. The general rise in food prices was 7.6%, being only 0.2% lower than the consumer price index.

That is, the rise in food prices, which maintained general inflation trends, was not the only “generator” of the inflation level. We get a clearer picture if we consider the rise in prices in commodity groups and for paid services. Among the groups showing a higher-than-general  inflation are footwear and clothing, which show an 11.6% rise, rent and utilities (an 11.8% rise), transport and communication (an 8% rise) and other goods and services (a 9.1% rise).

As regards other groups, drugs showed an 11.3% price rise, personal cars a 21.4% rise, personal services a 14.2% rise, recreation services a 10.5% rise and utilities a 12.3% rise.

Thus, a higher price rise was mostly registered among essential goods and services, which had a negative impact on consumption. This year retail trade turnover has hardly made any progress compared with the corresponding period last year.