WHY DO FOOD PRICES SOAR?
Azat Artsakh, Nagorno Karabakh Republic [NKR]
21 April 2006
In the past year the exchange rate of the dollar dropped very low, and over
the past three or four months it has been constantly fluctuating between 440
and 450 drams. The crisis was somehow slowed down but the dram is still weak.
To compare, the exchange rate was the same in 1995-1996. In 1997 it was
about 500-520 drams. The highest exchange rate of the dollar was reported in 2002
and 2003 â~@~S 570-600, sometimes even above 600. And only last year the
exchange rate of the dollar was more by 100 drams compared with the present rate.
Logically, the Armenian dram should have become stronger, however, the dram is
undergoing a continuous inflation. It is not a secret that many families in
Armenia and Karabakh live on the money that their relatives living abroad sent
them. The majority can hardly keep up with the soaring prices. The worst
thing is that the prices of basic commodities and food tend to go higher. The
price of sugar, for instance, has increased by 100-120 drams, and it is said to
reach 400 drams per kilo soon. The price of rice has doubled, and now rice
costs 630 drams per kilo. Rice of the lowest quality costs 380 drams. The
prices of tea, vegetable oil, etc, have increased as well. Shop owners think they
can increase the price by 10 drams and no one will notice it (they think it
is not a big sum). As a result, most people will have to cut the amount of
meat, cheese, flour, fruit and vegetables in their diets at the expense of their
health. And the government is just a viewer, saying that its interference
with price policy is unacceptable.
LAURA GRIGORYAN.
21-04-2006
–Boundary_(ID_X/d25oLwXp7z RoPQdNNVPg)–