PRICE CHECK: INFLATION PRESSURES PERSIST AMID DOLLAR-DRAM DOLDRUMS
SOCIETY | 22.12.14 | 17:40
Alina Nikoghosyan
ArmeniaNow intern
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Price Watch: Dram rebounds, inflation worries linger
The new customs regime implied by Armenia’s membership in the Eurasian
Economic Union (EEU), according to specialists, will only add to
inflation pressures in the country.
This opinion is shared by head of the Consumers Consulting Center NGO
Karen Chilingaryan, according to whom, after entry into the economic
grouping founded by Russia, Belarus and Kazakhstan there should be
no expectations for a positive change in Armenia’s domestic market.
“They make loud statements that we enter a market of 170 million
people. But if we have no purchasing power, there what is the use of
it?” Chilingaryan said, reacting to government officials’ statements
that EEU membership from January 1 will bring economic advantages
to Armenia.
On Monday the president of the Consumers Consulting Center also told
reporters that unjustified price increases should become a matter
for consideration of Armenia’s State Commission for the Protection
of Economic Competition (SCPEC) as well.
During the recent days prices for some basic foodstuffs and essential
goods drastically went up in the Armenian market in connection with
dram-dollar upheavals, and many businessmen used the opportunity to
raise retail prices.
On December 17, the Armenian dram hit its historical lows at around
600 AMD per UDS, and prices for some goods also shot up by as much
as 30 percent.
Later on, the dram rebounded and today already in most currency
exchange offices one dollar can be bought for 455-460 AMD. (Before
mid-November for a durable period of time the dram exchange rate
fluctuated within the range of 410-420 AMD).
It is noteworthy that last week Armenian Prime Minister Hovik
Abrahamyan visited several supermarkets and said that in the event of
the dollar rate fluctuating within 10-13 percent goods in the market
must not get 30 percent more expensive.
The PM also said that the “shock” was over’ and the real exchange
rate would be settled soon.
Some media reports said that last week the heads of four commercial
banks in Armenia tendered their resignations allegedly because of
being blamed for the currency market turmoil.
As for prices for some goods in the market, they remain relatively
high and have not gone down significantly after shooting up overnight.
Some also link it to the starting holiday season during which demand
tends to exceed supply in Armenia, leading to price increases.