Prices and situation in consumer market in Azerbaijan (2011)

In 2011, a rise of the retail goods turnover and paid services offered to population increased by 9.9 percent compared to 2010 and amounted to 21.7 billion manat. In particular, 74.4 percent accounted for retail sales, 20.4 percent - paid services.

In 2011, the trading networks of Azerbaijan sold population consumer goods at 16.4 billion manat, which is 10.6 percent more than 2010. Legal entities provided 12.9 percent of turnover, fairs and markets - 42.6 percent, individual entrepreneurs - 43.8 percent.

In 2011, the paid service rendered to population amounted to 5.332.4 billion manat, which is 7.8 percent more as compared to 2010. Individual entrepreneurs provided 73.0 percent of services, legal entities - 26.9 percent with growth of 10.2 percent and 2.7 percent respectively.

During the reported period, every citizen of the country acquired consumer goods and paid services at 200.5 manat that is 16.7 percent more than 2010, indicating that the purchasing capacity of citizens has increased.

In connection with the rapid economic development and population growth in prosperity, the Azerbaijanis preferred to global brands for many commodities, including alcoholic beverages, cigarettes and other tobacco products, motor vehicles, etc.

Prices

The Azerbaijani Tariff Council made a decision to raise charges on the subway, waste collection, transportation and disposal, heat supply and to reduce tariffs on high tech frequency resources and Internet services of the Azerbaijani Special State Protection Service from Dec.1, 2011.

Tariff Council of Azerbaijan decided to raise tariffs for metro fare to 0.2 manat (20 kopecks) from 0.15 manat (15 kopecks), the tariffs for solid waste collection and personally transported items were fixed at 0.3 manat (30 kopecks) per month per person and for other groups per one cubic metre - 10 manat. The tariffs for disposal of one cubic metre of waste were fixed at 1.2 manat.

Moreover, the Tariff Council reduced the tariffs for the expertise bureau by an average of 5 per cent. The bureau of commodity expertise is subordinate to the State Service for Antimonopoly Policy and Consumer Protection under the Ministry of Economic Development. The new rates for the bureau were also approved.

The Tariff Council reduced the cost of allocation, registration and use of frequency resources rendered by the state department on radio frequencies under the Azerbaijani Communications and IT Ministry, for diplomatic missions, consulates and international offices by 12 times.

The Tariff Council reduced the cost of Internet services rendered by the Azerbaijani Special State Protection Service by 7.1 times.

A growth in wages of the public sector's employees and costs of communal services influenced inflation level in Azerbaijan in 2011. The living wage was increased from 85 manat to 93.5 manat under the presidential order.

In December 2011, the prices for consumer goods and tariffs for services increased by 0.9 percent compared to the previous month, and increased by 7.9 percent in 2011 compared to 2010 (data from the State Statistics Committee).

Food prices increased by 10.4 percent, nonfood goods - by 2.6 percent, and tariffs for services - by 4.7 percent compared to 2010.

Food prices increased by 1.5 percent, nonfood goods - by 0.1 percent, and tariffs for services - by 0.6 percent in December compared to November 2011.

In December 2011, the base index of the consumer prices, calculated excluding goods and services, incurring seasonal changes (fruits and vegetable) and being regulated by the Government increased by 0.2 percent as compared to the previous month and by 5.4 percent to 2010.

Compared to the previous month, in December 2011, the index of industrial production prices decreased by 1.4 percent, compared to 2010, prices rose by 23.9 percent. Prices reduced by 2 percent in the oil and gas production in December compared to the previous month, but increased by 27.8 percent compared to 2010.

In the processing of chemical products, prices increased by 1 percent during the month, but rose by 20.6 percent per annum. In December 2011, the prices in metallurgy increased by 0.8 percent compared to the previous month, and increased by 9.0 percent during the year. In December, prices for electricity, gas and water remained unchanged as compared to the previous month.

Average market price and indices of basic food commodities in 2011

Source: The Azerbaijani State Statistics Committee