CBA: Increase in grain prices on world markets affects inflation in Azerbaijan
Azerbaijan, Baku, Sept. 15 / Trend N.Ismayilova /
Today, average consumer inflation is at about five percent in Azerbaijan, the Chairman of the Central Bank of Azerbaijan, Elman Rustamov, said. The country observed two-digit inflation
in previous years.
"Growth in consumer prices is mainly linked with external factors," Rustamov said.
Azerbaijan imports several food products, which include grain with specific weight of 26 percent of total imports of food products, so the increase in grain prices on the world markets had an impact on inflation in Azerbaijan, he added.
Rustamov said inflation demand is not observed in the country.
Based on the CBA data, the average annual inflation will amount to about 5-6 percent by late 2010.
Consumer prices and tariffs for services increased by 0.7 percent in Azerbaijan in August, the State Statistics Committee reported.
ood prices rose by one percent, while tariffs for paid services to the public and prices on industrial goods increased by 0.2 percent.
Price hikes were also observed on foodstuffs, such as bread, pasta, cheese, eggs, butter, vegetable oil, yogurt, beef, bananas, lemons, chestnuts, cabbage, beets, carrots, potatoes, tomatoes and cucumbers.
During the reporting period, prices fell on food products such as chicken, fresh fish, non-pasteurized milk, cream, apples, pears, melons and watermelons, grapes, eggplant and onions. Prices on clothing and footwear dropped, while prices on construction materials increased.
Tariffs for passenger transportation to CIS countries by air and rail also increased in August.
It is expected to increase the volume of imports of grain, including one million from Kazakhstan, to meet the country's demand in grain in 2010.
This year Azerbaijan increases the volume of grain imports due to the disaster in the Aran (central) parts of the country where the crop area (110,000 hectares) were flooded, so the grain need in the country is expected to be covered due to grain imports. Presumably, the harvest in the country will not exceed 2.1 million tons, including about 1.3 million tons of wheat, while the harvest in the country hit 3 million tons in 2009.
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