FOOD PRICES RISE BY 6.2% IN ARMENIA IN OCTOBER

YEREVAN, NOVEMBER 3, NOYAN TAPAN. A considerable – 6.2% growth of food
prices was registered in Armenia in October 2007 as a result of
0.8-21.7% growth registered in 12 out of the 13 commodity groups
observed.

According to the RA National Statistical Service, a 9.1% inflation was
registered in the commodity group of bread products in October on
September 2007 mainly due to a 15.8% growth in flour prices. Bread
prices rose by 7.4% in the indicated period. The rise in bread and
flour prices made 23.8% and 28.9% respectively in October 2007 on
December 2006.

Prices grew by 20.5% in the commodity group of butter and vegetable oil
in October on September 2007 mainly as a result of a growth in butter
and vegetable oil prices – 19.2% and 41.1% respectively. Butter and
vegetable oil prices grew by 39.3% and 55.9% respectively in October
2007 on October 2006.

The 11% fall in prices of vegetable (sunflower) oil in January 2006 –
July 2007 in Armenia was followed by a rise of 61.3% in August-October
2007. The ratio of the maximum average price of vegetable oil
(registered on October 19, 2007) to the minimum average price
(registered in July) made 209.2%. The 5.4% fall in butter prices in
February 2006 – April 2007 was followed by a 42.6% rise. The ratio of
the maximum average price of butter (registered on October 19, 2007) to
the minimum average price (registered in April) made 174.4%.

A 12.9% inflation was registered in the fruit commodity group in
October 2007 on October 2006, 3.4% inflation – in October on September
2007, which was mainly due to a rise in prices of peach (24.4%), plum
(23.3%), watermelon (26.7%) and melon (84.2%).

A 5.1% price fall was registered in the commodity group of potato and
vegetales in October 2007 on October 2006, 3.3% inflation – in October
on September 2007, which was mainly due to a rise in prices of beans
(10.1%), cabbage (14.2%), garlic (14.5%), cucumber (22.3%), eggplant
(32.3%), tomato (49.4%) and green pepper (57.6%), Potato prices grew by
1.5% in the indicated period. The average price of eggs grew by 2.7% in
Armenia in October on September 2007.

A 1% inflation was registered in the commodity group of meat products
in October on September 2007 mainly as a result of a rise in prices of
chicken legs and meat – 3.8% and 4.9% respectively. Prices of beef and
mutton grew by 0.5% and 0.8% respectively in the indicated period,
while pork prices fell by 2.1%.

The 14.4% fall in granulated sugar prices in Jnauary-September 2007 was
followed by a 3.3% growth in October, which was registered during a
monitoring on October 19.

0.8-2.8% inflation was registered in the commodity groups of other
foodstuffs, milk products, soft drinks, confectionery in October on
September 2007, while prices on the commodity groups of coffee, tea,
cocoa, alcoholic drinks and cigarettes remained at the level of the
previous month.