FOOD PRICES GROW BY 7.2% IN ARMENIA IN JANUARY-MARCH 2008

Noyan Tapan
April 1, 2008

YEREVAN, APRIL 1, NOYAN TAPAN. 7.2% overall inflation was registered
in Armenia’s food commodity market in January-March 2008. Inflation in
March on February made 2%. 0.1-6.9% inflation was registered in 10 out
of 13 food commodity groups under observation in the indicated period.

According to the RA National Statistical Service, the growth in
bread prices made 33.3% in March 2008 on March 2007, 6.8% in March on
February 2008. The latter was mainly conditioned by a rise in prices of
first-class flour (7.5%) and high-quality flour (12.6%). First-class
bread prices grew by 5.9%, high-quality bread prices – by 7.5%,
prices of macaroni by 3.1-3.2% in the indicated period.

Price growth in the commodity group of butter and vegetable oil
made 32.3% in March 2008 on March 2007, 4.8% in March on February
2008. The latter was mainly due to a rise in prices of butter (5.7%)
and vegetable (sunflower) oil (6.2%).

There was 6.9% inflation in the commodity group of coffee, tea and
cocoa in March on February 2008, mainly due to 12.2% growth in price
of ground coffee. The average price of eggs rose by 2.1% in March on
February 2008.

Inflation in the commodity group of meat products made 0.5% in March
on February 2008, mainly due to a growth in prices of pork (7.4%)
and mutton (11.8%). Beef prices fell by 0.3% in the indicated period.

Granulated sugar prices rose by 1.2% in March on February
2008. 0.1-0.3% inflation was registered in the same period in the
commodity groups of soft drinks, alcoholic drinks and cigarettes,
milk products, other foodstuffs, and confectionery.

Prices of vegetables and potato grew by 5.6% in March 2008 on March
2007 and fell by 4.7% in March on February 2008. The latter was mainly
conditioned by a fall in prices of chives (24.1%), cucumber (14.2%),
cabbage (12.5%), beet (7.5%), and tomato (7%). Price of onion fell by
3,1%, while prices of gralic, potato, and carrot increased by 0.3-3.7%
in the indicated period.

21.6% price fall was registered in the commodity group of fish products
in February-March 2008. Fish prices fell by 4.6% in March on February
2008. The fall in prices of smoked and fresh white fish made 14.9%
and 4.5% respectively in the indicated period.

There was 5.7% inflation in the fruit commodity group in March 2008
on March 2007, 2.1% price fall in March on February 2008. The latter
was mainly due to a 5.5-14.4% fall in prices of grapes, pear and
apple. Prices of lemon, tangerine, orange and banana grew by 0.8-10.2%
in the period under review.