ArmInfo And STAR Are Entering The Market With Dining Table Price Ind

ARMINFO AND STAR ARE ENTERING THE MARKET WITH DINING TABLE PRICE INDEX

ArmInfo
2009-04-10 19:38:00

ArmInfo. ArmInfo News Agency, jointly with STAR company, is presenting
the first independent consumer index "ArmInfo-STAR." In fact, this is
a Dining Table Price Index (DTPI), an attempt to reflect the spending
of the middle class on the most "popular" food products.

In Mar 2009, as compared with Feb 2009, the index made up 116.43. Thus,
in Mar 2009 the cost of the dining table basket grew by 16.4%. The
average amount of one purchase fell from 2,589 AMD to 2,452 AMD. Growth
was registered in 30 of 44 products, decline – in 14 items. The price
of tea rose by 55%, orange by 53.7%, banana by 38.9%, vegetable
oil by 37.2%; for the rest of the products the growth was from 1%
to 28%. The price of flour dropped by 82%, pork by 32.7%; for the
remaining 12 items the drop ranged within 1%-16%.

Director General of ArmInfo NA Emmanuil Lazarian says that his agency
has introduced this index for ensuring adequate assessment of cost
behavior and the buying capacities of the middle class especially as,
today, food is the key item of the expenses of an Armenian family
and will be such for a long time yet. The index helps to analyze
the solvency and the changes in the cost of the food basket of the
middle-class consumer, who is also the key user of retail banking,
insurance and other services.

The major reason for ArmInfo’s partnership with STAR is that, first,
STAR’s network covers all communities of Yerevan and is actively
expanding into the regions, second, its prices are relatively low and,
finally, this company is open to the public.

Director General of STAR Vahan Kerobyan says that his company does
its best to create favorable conditions for its consumers. "Our
reasonable price policy and wide package of marketing solutions in
the form of various discount actions make purchase in our supermarkets
affordable for quite wide population groups. So, our participation in
this project is quite appropriate."This index is not an alternative
to the consumer index (inflation rate) of the National Statistical
Service of Armenia as the latter has a broader scope. The objective
of DTPI "ArmInfo-STAR" is to show monthly cost behavior of a certain
population group preferring to buy goods in supermarkets.

The index reflects the prices of the foodstuffs that enjoy the highest
popularity among the STAR consumers. It considers changes in both
the prices and the quantity of consumed goods. In fact, this is not
an absolute price index but rather an indicator reflecting changes
in total consumer spending.

It comprises most of the basic mass consumption products, including
alcohol and cigarettes, as well as seasonal products (ice-cream,
vegetables and fruits). Each month, in addition to the consumer price
index, ArmInfo will provide information about discount actions at
STAR supermarkets, with an analysis of how much money the buyers may
save as a result of these actions, as well as about changes in the
number of STAR clients.