Prices and situation in consumer market in Azerbaijan (January-June 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.-June 2012, the Azerbaijani trading networks sold consumer goods to the population at 8.196.5 billion manat, which is 9.2 percent more than in Jan.-June 2011. Legal entities and individual enterpreneurs ensured 59 percent of trade turnover, fairs and markets - 41 percent.

The share of private sector in the retail trade turnover amounted to 99.5 percent. The population bought consumer goods worth 8.156.6 billion manat from the enterprises in January-June, or 9.3 percent more than in the same month of last year.

During the reported period, every citizen of the country acquired consumer goods at 149 manat that is 13.8 percent more than in Jan.-June 2011. The Azerbaijani retail trade facilities sold food worth 4.664.4 billion manat with an increase of 0.9 percent and non-food goods worth 3.532.1 billion with a growth of 23.2 percent.

Paid services worth 2.504.9 billion manat were rendered to the population during the period, or 8 percent more compared to January-June 2011. Legal entities ensured 51.3 percent of this growth and rendered the services worth 1.9 billion manat.

In January-June 2012, each citizen acquired paid services worth 45.7 manat, or 3.7 manat more than in January-June 2011. Transportation, public utilities and communication services prevail in the structure of paid services.

Prices

Deflation was recorded in Azerbaijan in June. In Jan.-June 2012, the prices on consumer goods and tariffs for services decreased by 1.3 percent compared to the previous month, and increased by 2.2 percent compared to Jan.-June 2011 (data from the State Statistics Committee).

Food prices increased by 2.6 percent, nonfood goods - by 1.3 percent, and tariffs for services - by 1.7 percent compared to Jan.-June 2011.

Food prices decreased by 2.7 percent in June 2012 compared to May 2012, nonfood goods and the tariffs for services remained at the same level.

During the month there was a decline in prices for rice, semolina and buckwheat, bread, pasta, lamb and chicken, fresh fish, unpasteurized milk, butter, sunflower oil and olive oil, sugar and granulated sugar, bananas, apples, and so on.

In June, there was an increase in prices for beef, eggs, chestnut, lemon, mandarin, greens, beets, carrots and onions.

In June 2012, the index of industrial production prices decreased by 11.4 percent compared to the previous month. The prices increased by 8.3 percent compared to Jan.-June 2011. Prices decreased by 13.7 percent in the oil and gas production compared to the previous month, but increased by 9.4 percent compared to Jan.-June 2011.

In the processing of chemical products, prices decreased by 2.5 percent during the month, and by 5 percent per annum. In June 2012, the prices in metallurgy increased by 0.5 percent compared to the previous month, and increased by 6.2 percent during the year. In June, prices on electricity, gas and water increased by 0.4 percent compared to the previous month and decreased by 0.2 percent per annum

In June the index of producer prices in manufacturing industry decreased by 0.7 percent. The prices in the wood processing and wood product manufacturing decreased by 0.6 percent, clothing - remained at the same level and production of rubber and plastic goods - decreased by 0.2 percent.

Prices in the food industry dropped by 0.6 percent, electrical equipment - by 0.2 percent, leather, leather products and footwear - remained the same.

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.

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

Source: Azerbaijani State Statistics Committee