ArmInfo-STAR Dining Table January Price Index makes up 102,97 points

2010-03-05 17:17:00

ArmInfo. "ArmInfo-STAR" Dining Table Price Index (DTPI), based on the
costs of the 50 most popular food products at the network of
supermarkets STAR, totaled 102,97 points in January 2010 with a view
to basic February 2009.

As compared to the similar period, i.e. to January 2009, the average
weighted consumption of bread reduced by 7,4%. Consumption of just one
of the kinds of bread, 490-gram "Hrazdan" bread, raised, with some
price reduction (from 150 to 130 AMD). Moreover, consumption of this
kind of bread considerably grew – by 105%, however, its small specific
weight in total bread consumption insignificantly affected the whole
picture.

The samples of consumer behaviour of in Armenia have not yet studied,
however, one may suppose that bread consumption in general is less
subject to changes, first of all, because it is at the bottom of the
"pyramid" of food needs, second, one may suppose even practically that
the Armenian consumers reduce the costs for bread just at a last
resort. Total reduction of brad consumption may be explained by growth
of bread consumption outside of the STAR network.

Consumption of potato grew by 11,8%, with price reduction by 20 drams.
Sugar consumption grew by 171%. Apparently, this is explained by the
fact that growth of sugar price in the STAR network was appreciably
less (by 40 – 50 drams) than in the retail trade in general.

Meat consumption as compared to January 2009 reduced by 31,4%, with
almost 150 drams rise in price (to 1750 AMD/kg). If take into account
that growth of the price for beef was weaker than in the retail trade
in general, reduction of consumption confirms once again reduction of
meat consumption irrespective of the price. The same concerns fresh
chickens, consumption of which reduced by 64,55 points under
insignificantly reduced price.

Despite reduction of prices for dairy products in early 2010, their
consumption also reduced, that may indicate some vulnerability of
dairy products in the average customer basket (regardless of the
opinion about the traditional place of matsoun, for example, on the
Armenian daily table). The price for milk and 4 dairy products
(exclusive of cheese), present in the "TOP 50", reduced by 30-40 drams
by December 2009, and by 50-60 drams by January 2009. Moreover,
consumption reduced by 17,3% on average, as compared to January, 2009.
Consumption of cheese (Lori kind is presented in the list) also
reduced sharply (almost 2,5 times), despite a notable price reduction
(by almost 200 drams). Consumption of vegetables, cabbage and carrot,
reduced by almost 45%, despite the fact that their price reduced to
the level of the average price in markets. The same concerns the
greens (though their price is higher than in markets). As for fruits,
the average weighted reduction of consumption of 4 of them, present in
the list (orange, banana, grapefruit) makes up 9,5%. Moreover,
dispersion on each of them turned out to be rather great (banana
consumption grew by 34,8%, and grapefruit consumption fell by 76,3%).

In general, consumption reduction, which affected almost all the
products (even regarding the crisis January of 2009), may be primarily
ascribed to the crisis impact. At the same time, one should also take
into account the changing infrastructure, i.e. other food stores which
are opened in the neighbor of STAR supermarkets.