Prices and situation in consumer market in Azerbaijan (Jan.-May 2012)

The Azerbaijani consumer market is developing rapidly (9-10 percent of the annual growth). The retail trade facilities, catering trade points form the basis of this growth. They are developing in the country both qualitatively and quantitatively.

According to the State Statistics Committee, in Jan.-May 2012, the Azerbaijani trading networks sold consumer goods to the population at 6.806.1 billion manat, which is 9.4 percent more than in Jan.-May 2011. Legal entities and individual enterpreneurs ensured 46.0 percent of trade turnover, fairs and markets - 41.5 percent.

The share of private sector in the retail trade turnover amounted to 99.5 percent. The population bought consumer goods worth 6.771.2 billion manat from the enterprises in January-May, or 9.4 percent more than in the same month of last year.

During the reported period, every citizen of the country acquired consumer goods at 148.6 manat that is 14.3 percent more than in Jan.-May 2011. This testifies to the increase in the purchasing capacity of citizens.

The Azerbaijani retail trade facilities sold food worth 3.923.6 billion manat with an increase of 1.2 percent and non-food goods worth 2.882.5 billion with a growth of 23.4 percent.

Paid services worth 2.061.5 billion manat were rendered to the population during the period, or 8.8 percent more compared to January-May 2011. Legal entities ensured 68.9 percent of this growth and rendered the services worth 1.586.5 billion manat.

In January-May 2012, each citizen acquired paid services worth 45.1 manat, or 3.9 manat more than in January-May 2011. Transportation, public utilities and communication services prevail in the structure of paid services.

Prices

Deflation was fixed in Azerbaijan in May. In Jan.-May 2012, the prices on consumer goods and tariffs for services decreased by 0.9 percent compared to the previous month, and increased by 2.5 percent compared to Jan.-May 2011 (data from the State Statistics Committee).

Food prices increased by 3.1 percent, nonfood goods - by 1.3 percent, and tariffs for services - by 1.9 percent compared to Jan.-May 2011.

Food prices decreased by 1.9 percent in May 2012 compared to April 2012, nonfood goods remained at the same level. The tariffs for services increased by 0.2 percent.

According to the forecasts of international financial organizations, single valued inflation is expected to remain in Azerbaijan in 2012. According to the latest report of the International Monetary Fund, in 2012 the average annual inflation rate in Azerbaijan is projected at 5.6 percent. According to the IMF report, the average annual inflation in the CIS in 2012 will amount to 7.1 percent, in developing countries - 6.2 percent. The projected inflation rate in Azerbaijan is 1.5 and 0.6 percent less than in the two groups.

In May 2012, the index of industrial production prices decreased by 7.6 percent compared to the previous month. The prices increased by 12.3 percent compared to Jan.-May 2011. Prices decreased by 9.3 percent in the oil and gas production compared to the previous month, but increased by 13.9 percent compared to Jan.-May 2011.

In the processing of chemical products, prices increased by 1.2 percent during the month, but increased by 6.3 percent per annum. In May 2012, the prices in metallurgy decreased by 0.4 percent compared to the previous month, and increased by 7.4 percent during the year. In May, prices on electricity, gas and water decreased by 0.5 percent compared to the previous month and decreased by 0.2 percent per annum

In May the index of producer prices in manufacturing industry hit 100.4 percent. The prices in the machinery and equipment production increased by 0.6 percent, wood processing and wood product manufacturing - remained at the same level, clothing - increased by 0.2 percent, production of rubber and plastic goods - decreased by 1.2 percent.

Prices in the food industry dropped by 0.1 percent, electrical equipment - by 0.3 percent, leather, leather products and footwear - 0.8 percent.

Average market price and indices of basic food commodities in Jan.-May 2012

Source: Azerbaijani State Statistics Committee