FOOD PRICES GROW BY 7.3% IN FIRST SIX MONTHS OF 2008 IN ARMENIA

NOYAN TAPAN

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Food prices grew by 7.3% in in June 2008 in Armenia compared with
December 2007 and fell by 1.4% as compared with May 2008.

According to the data of the RA National Statistical Service, a
12.2-0.2% fall in prices was registered in 5 out of 13 commodity
groups under observation, and a 0.2-5.5% growth in prices in other 8
commodity groups. A 12.2% fall in prices was registered in the group
of fish products, which was mainly conditioned by a 13.8% fall in
prices for white fish.

Prices for vegetables and potato fell by 9.8% in June 2008 compared
with May and by 22.7% compared with June 2007. In June 2008 as compared
with May prices for green beans fell by 58%, for green pepper by 46.8%,
for tomato 38.7%, herbs 27.2%, eggplant 24.9%, cucumber 19.7%, onion
2.3%. Parallel with it, prices for carrot grew 2.1-fold, for beet
2.4-fold, for cabbage 1.8-fold, for potato by 6%, for garlic by 5.7%.

A 9.5% fall in prices was registered in fruit commodity group in
June 2008 compared with May and a 11.3% fall in prices compared with
June 2007.

The average price for eggs in the country fell by 3.7% in June 2008 as
compared with May, for dairy products by 0.2%, for alcoholic drinks
and cigarettes by 0.1%. In the commodity groups of other foodstuffs
a 14.5% growth in prices was registered in June 2008 as compared
with June 2007 and a 4% growth as compared with May 2008. The latter
was mainly conditioned by a 4.7% growth in prices for salt, 6.7%
for black pepper, 9% for baking soda.

A 5.5% growth of prices for soft drinks was recorded in June 2008 as
compared with May in Armenia, which is mainly the result of a 12.8%
growth in prices for Jermuk mineral water (in glass bottles).

A 31.6% growth in prices was recorded in the bread products commodity
group in June 2008 compared with June 2007 and a 0.9% growth in prices
as compared with April 2008. The latter was mainly due to a 9.1%
growth in prices for rice and 5% for grain.

In the commodity group of coffee, tea and cocoa a 18.5% growth in
prices was recorded in June 2008 as compared with June 2007 and a 2.1%
growth as compared with May 2008. The latter was mainly due to a 4.4%
growth in prices for coffee.

A 5.9% growth in prices was recorded in the meat products commodity
group in June 2008 as compared with June 2007. Prices for beef, pork,
and mutton grew by 0.3%, 0.5%, and 9.9%, respectively, in June 2008
compared with May.

In commodity groups of confectionery, oil and butter, sugar a 0.2-0.9%
growth in prices was recorded in June 2008 as compared with May.