FOOD PRICES RISE BY 2.8% IN ARMENIA IN DECEMBER 2007

Noyan Tapan
Jan 9, 2008

YEREVAN, JANUARY 9, NOYAN TAPAN. 2.8% rise in food prices in Armenia in
December on November 2007 was mainly conditioned by 0.1-23.8% inflation
registered in 10 out of the 13 food commodity groups under observation.

According to the RA National Statistical Service, there was a 5.4%
price fall in the commodity group of vegetables and potato in December
2007 on December 2006 and 23.8% price growth – in December on November
2007. Prices of garlic, beet, potato, carrot, onion, cauliflower
rose by 1.6-29%, prices of tomato and cucumber grew 2fold and 1.9fold
respectively in December on November 2007.

97.9% inflation was registered in the commodity group of fish products
in December 2007 on December 2006, 9.7% inflation – in December on
November 2007.

16% inflation was registered in the fruit commodity group in December
2007 on December 2006, 10.2% inflation – in December on November
2007, which was mainly due to a rise in prices of apple (11.9%),
pear (19.4%), grapes (19%), pomegranate (24.6%), blood orange
(37.7%). Prices of tangerine, orange and banana fell by 1-20.1%
in the indicated period.

The average price of eggs fell by 9.4% in December 2007 on December
2006 and grew by 3.8% in December on November 2007.

2.7% inflation was registered in the commodity group of meat products
in December 2007 on December 2006, 0.1% inflation – in December on
November 2007, which was mainly due to a rise in prices of pork (0.8%),
ham (1.2%), sausages (1.9-5.5%). Beef and mutton prices fell by 0.7%
and 0.5% respectively in the indicated period.

0.2-1.1% inflation was registered in the commodity groups of coffee,
tea, cocoa, bread products, confectionery, milk products, soft
drinks in December on November 2007. There was 29.2% inflation
in the commodity group of butter and vegetable oil in December
2007 on December 2006, 4.5% price fall – in December on November
2007. 71.9% overall growth in prices of vegetable (sunflower) oil
in August-November 2007 was followed by a 5% price fall in December,
while 47.3% overall growth in butter prices in May-November 2007 was
followed by 7.1% price fall in December.

Price of granulated sugar fell by 19.2% in Armenia in December 2007
on December 2006 and by 1.4% in December on November 2007.

0.1% price fall was registered in the commodity groups of other
foodstuffs, alcoholic drinks and cigarettes in December on November
2007.