Food Prices Grow By 7.8% In Armenia In January-April 2008

FOOD PRICES GROW BY 7.8% IN ARMENIA IN JANUARY-APRIL 2008

Noyan Tapan

Ma y 14, 2008

YEREVAN, MAY 14, NOYAN TAPAN. The tendency to inflation, which was
registered in Armenia’s food commodity market in the first three
months of 2008, continued in April. The four-month inflation made 7.8%.

According to the RA National Statistical Service, there was 0.6% growth
in food prices in April on March. In the indicated period, inflation
made 0.2-5.6% in 6 out of the 13 commodity groups under observation.

Prices of bread products grew by 41.3% in Armenia in April 2008 on
April 2007 and by 5.6% in April on March 2008. The latter index was
mainly conditioned by a growth in prices of flour of first quality
(5.9% growth) and high quality (9.2%), and by a growh in prices of
high-quality bread (5.6%), lavash (6.4%) and macaroni (7.3%).

Butter and vegetable oil prices increased by 38.5% in April 2008 on
April 2007 and by 4.6% in April on March 2008. The latter index was
mainly conditioned by a growth in prices of butter (6.3%) and vegetable
(sunflower) oil (5.7%).

4.6% inflation was registered in the commodity group of coffee,
tea and cocoa in April on March 2008, mainly due to a growth in
coffee prices. 2% inflation was registered in the commodity group of
meat products in April on March 2008, mainly due to a growth of the
prices of pork (9.1%) and beef (3.7%). Mutton prices fell by 4.2%
in the indicated period. The average price of eggs rose by 1.3% in
April on March 2008. Prices of alcoholic drinks and cigarettes grew
by 0.1%, those of soft drinks – by 0.2% in April on March 2008. 9.6%
price fall was registered in the commodity group of fish products in
April on March 2008, which was mainly due to a fall in the prices of
smoked and fresh white fish by 14.9% and 10.3% respectively.

Vegetable and potato prices fell by 14% in Armenia in April on March
2008 and by 7.2% in April 2008 on April 2007. There was a fall in
prices of herbs (31%), chives (28.9%), cucumber (21.2%), potato
(12.9%), cabage (12.75), tomato (11.7%), beet (9.4%), carrot (4.4%),
and garlic (3.1%) in April on March 2008.

2.3% inflation was registered in the fruit commodity group in
April 2008 on April 2007, while 1.1% price fall – in April on March
2008. Apple, pear, grape prices fell by 0.4-1.4% in April on March
2008, while prices of imported fruit such as tangerin, lemon, banana
and orange grew by 3.9-7.9%.

Prices of granulated sugar, milk products and confectionery fell by
0.1% in the country in April on March 2008.