Prices and situation in consumer market

Consumer market

In January to August 2008 a rise of the retail goods turnover got restored amid continuing rise of the community services and was 118.0%. The amount of retail goods turnover comprised AZN 6781.2mln or 15.3% up as compared to last year. The commercial services delivered to population comprised AZN 2027.7mln or 29.6% up as compared to previous year

Prices

In January to August 2008 the growth pace of inflation was 21.3% as compared to 2007, when it was at 15.9%.

Considerable rise in the growth pace of inflation was caused by intensification of the growth pace of prices of all goods, particularly services. It is linked with the resolution by the Tariff Council, dated 8 January 2007, on increase of prices of energy resources and transport fairs. The prices continue to increase under influence of the import inflation.

In August, prices for the consumer goods and tariffs remained at the same level. The food prices decreased by 0.1% in August. The prices of non-food products increased by 0.4%. The service prices rose 0.1%.

Thus, in January to August 2008 the food prices rose 29.6% as compared to 2007. The prices of non-food products increased 11.1%. The service prices rose 11.4%.

In August, the base index of the consumer prices incurring seasonal changes (fruits and vegetable) and being regulated by the Government made up 100.1% as compared to the previous month, and 122.6% to the same period of the last year.

As compared to July, in August 2008 the index of industrial goods price decreased by 5.4%. The figure increased by 26.8% as compared to the same period of 2007. Price reduction in oil and gas production was 7.2% in August, while in January to August increased by134.5%.

The prices for electricity, gas and water remained unchanged.

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