FOOD PRICES GO UP 8.9% IN ARMENIA IN FIRST FIVE MONTHS OF 2008

Noyan Tapan

Ju ne 2, 2008

YEREVAN, JUNE 2, NOYAN TAPAN. Food prices grew by 8.9% in Armenia
in May 2008 on December 2007 and by 1% on April 2008. 0.4-11.8%
inflation was registered in 9 out of the 13 commodity groups under
observation in May on April 2008.

According to the RA National Statistical Service, 11.8% price growth
was registered in May on April 2008 and 1.3% fall – in May 2008
on May 2007 in the fruit commodity group. Strawberry, pear, grape,
lemon and tangerine prices rose by 8-21.3% in May on April 2008. At
the same time there was a fall in prices of banana (13,2%) and apple
(3.4%) in Armenia.

Inflation in the commodity group of other foodstuffs made 10.2%
in May 2008 on May 2007 and 7.7% in May on April 2008. The latter
growth was mainly due to a 12.3% growth in salt price.

There was a 3.7% growth in prices of soft drinks in May on April
2008, mostly due to a 9.6% growth in price of "Jermuk" mineral water
(in glass bottles).

Inflation in the commodity group of bread products made 44.7% in May
2008 on May 2007 and 2.3% in May on April 2008. The latter was mostly
due to a growth in rice price (13.7%).

The average price of granulated sugar fell by 11% in Armenia in May
2008 on May 2007 and grew by 1.7% in May on April 2008.

Butter and vegetable oil prices grew by 41.2% in May 2008 on May 2007
and by 1.7% in May on April 2008. The latter growth was due to a rise
in prices of butter (1.9%) and vegetable (corn) oil (1.7%).

Inflation in the commodity group of coffee, tea and cocoa made 16%
in May 2008 on May 2007 and 1.1% in May on April 2008. The latter
growth was mainly due to a 1.4% growth in coffee price.

Inflation in the meat commodity group made 5.5% in May 2008 on May
2007 and 1% in May on April 2008. The latter increase was mainly due
to a rise in prices of beef (1.9%), pork (3.2%) and mutton (6.3%).

0.2-0.4% inflation was registered in the commodity group of alcoholic
drinks, cigarettes and confectionery in May on April 2008.

Prices in the commodity group of fish products fell by 14% in May
on April 2008, mainly due to a 15.2% fall in the price of fresh
white fish.

Vegetable and potato prices fell by 5.1% in May on April 2008 and by
26.5% in May 2008 on May 2007. There was a fall in prices of cucumber
(60.7%), potato (20.6%), herbs (10.9%), cabbage (7.8%), garlic (5.8%),
tomato (1.8%) in Armenia in May on April 2008. In parallel with it,
onion, carrot, beet, green pepper and eggplant prices grew by 1.6-30%.

The average price of eggs fell by 2.9% in Armenia in May on April 2008.