A simultaneous and sharp decline in prices for various types of products, including food, is a sharp violation in terms of ensuring the rules of economic competition, Suren Parsyan, responsible for economic research at the ARF told reporters on Monday.
According to the expert, such steps hinder or completely block the emergence of new economic entities on the market.
“If prices are low on the market, then new economic entities simply cannot appear on it, because they will not be interested in this market,” he explained referring to a number of examples, and recalling the situation with sugar imports.
The fall in prices, according to the analyst, could be due to the strengthening of the national currency - dram, and its rise in price by 3%, the emergence of a new major player in the market, and the possible collusion of a number of economic entities that have a monopoly position in the market. When asked how a sharp drop in prices for a number of essential goods can affect the well-being of citizens in the long run, the economist said: “This is not a healthy phenomenon in terms of economics and business. From the point of view of entrepreneurs, this is a very serious problem with serious risks ... In 2008, a sharp drop in egg prices was recorded in Armenia. Then one egg could be bought for AMD 10-15. Yes, for ordinary consumers this is, in the short term, good. But as a result, many small entrepreneurs went bankrupt, and after two to three months, egg prices rose sharply again,” he said.