Increase in food price greatly affects inflation in Armenia than in other countries of region – CBA President

The share of food in the consumer basket in Armenia is 41%, in Georgia 30%, Russia – 31% and Turkey 22%. Based on this the increase in prices of food greatly affects the overall figure of inflation in Armenia than in other countries of the region, President of the Central Bank Artur Javadyan said during the parliamentary hearings on the possibilities to mitigate price increase.

“The share of food products in the consumer basket in Armenia is 41%, in other words, the average consumer directs 41% of his/her expenses to purchasing foods. This figure in the developed countries is 10-11%, the maximum is 15%”, the CBA President said, adding that the 5.5% average increase in prices of foods in Armenia resulted in 2.3% inflation, and in Georgia the 7.3% price increase of foods products led to 2.2% inflation.

The CBA President stated that the inflation is calculated based on the representative consumer basket which mostly presents the low elite consumption structures, and the questions over the affect of the drastic price increase of separate products are overestimated.

He informed that in 2017 the inflation in Georgia comprised 6.7%, in Azerbaijan 7.9%, Russia – 2.5%, Ukraine – 13.7%, Moldova – 7.3%, Turkey – 19.9%, Iran – 10%. In Armenia the inflation in 2017 was 2.6%.