Prices and situation in consumer market in Azerbaijan (January-July 2013)

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

According to the State Statistics Committee, in January-July 2013, the Azerbaijani trading networks sold consumer goods to the population at 10.651.2 billion manat, which is 9.2 percent more than in January-July 2012. Legal entities ensured 12.2 percent of trade turnover, individual entrepreneurs - 56.4 percent, fairs and markets - 43.6 percent.

The share of private sector in the retail trade turnover amounted to 99.8 percent. The population bought consumer goods worth 10.6 billion manat from the enterprises in January-July 2013 or 9.5 percent more than in the same period of last year.

The Azerbaijani retail trade facilities sold food worth 5.5 billion manat with an increase of 0.2 percent and non-food goods worth 5.1 billion manat with a growth of 21.8 percent.

During this period, every citizen of the country acquired consumer goods at 163.7 manat per month or by 14.3 manat more than in the same period of 2012.

Paid services worth 3.300.5 billion manat were rendered to the population during the period, or 6.8 percent more compared to January-July 2012. Legal entities ensured 58.0 percent of this growth and rendered the services worth 2.516.7 billion manat.

In January-July 2013, each citizen bought paid services worth 50.9 manat per month, or 4.2 manat more than in January-July 2012. Transportation, public utilities and communication services prevail in the structure of paid services. Besides improving the material condition, great using of paid services by the population is associated with the fact that the structure of rendered paid services is being improved. A network of companies is being developed in this sector.

Prices

According to the State Statistics Committee, in July 2013, the prices on consumer goods and tariffs on services decreased by 0.7 percent compared to the previous month and increased by 2.1 percent in January-July 2013 in accordance with January-July 2012.

Thus, inflation in Azerbaijan, which is one of the indices of macroeconomic stability, hit only 2.1 percent in January-July 2013 compared to the same period in 2012.

According to the Azerbaijani Central Bank's forecasts, inflation will be preserved at 5-6 percent by influencing the monetary growth rate by classical regulatory tools in Azerbaijan in 2013.

The food prices increased by 2 percent, tariffs for services - by 3.3 percent and non-food goods by 0.5 percent in January-July 2013 compared to January-July 2012.

Food prices decreased by 1.7 percent, nonfood goods remained unchanged, tariffs for services increased by 0.1 percent in July.

The State Statistics Committee fixes the decrease in prices on buckwheat, lamb, fresh fish, unpasteurised milk, sterilized milk, sunflower oil, bananas, apples, pears, peaches, melons, cabbage, cucumbers, tomatoes, peppers, eggplant, beets, onions, garlic, sugar and granulated sugar, sour cream, as well as the increase in prices on beef and chicken meat, sausages, pasteurized milk, eggs, butter, lemons, cherries, sweet cherries, strawberries, chestnuts, carrots, greens.

The tariffs for passenger transportation by railway, as well as international air transport among the paid services rendered to the population increased in July.

In July, the base index of consumer prices, calculated except for the goods and services subject to seasonal changes (fruits and vegetables) and the prices of which are regulated by the state, increased by 0.1 percent compared to the previous month and increased by 0.5 percent compared to January-July 2012.

The industrial producer price index increased by 4.1 percent in July 2013 compared to the previous month, while the prices decreased by 5.2 percent compared to the same period of last year. The prices increased by 4.8 percent in the oil and gas production in July compared to the previous month, while they reduced by 7.1 percent compared to the same period of last year. The producer prices in the extraction of metal ores increased by 2.5 percent within a month. The prices on stone, sand, gravel, salt and other mining products reduced by 0.3 percent.

As of July, the Producer Price Index in manufacturing industry decreased by 0.4 percent. The prices in wood processing and wood product manufacturing decreased by 0.2 percent, clothing prices increased by 0.9 percent, production of rubber and plastic goods decreased by 0.5 percent.

Prices in the food industry decreased by 0.4 percent, leather goods and footwear increased by 2.2 percent, electrical equipment - remained at the same level.

The prices in the tobacco production decreased by 5 percent, in the installation and repair of machinery and equipment - by 2.2 percent, the production of other metal products - by 1.8 percent, the production of building materials - by 1.1 percent, the production of electrical, jewelry, music, sports and music equipment - by 0.6 percent, the beverage production - by 0.5 percent in July.

The production in the chemical industry increased by 2.8 percent, in the textile industry by 1.6 percent, paper and cardboard - by 1.2 percent, furniture - by 0.3 percent, computers and electronic equipment - by 0.1 percent in July.

Average market price and indices of basic food commodities in January-July 2013

Source: Azerbaijani State Statistics Committee