Prices and situation in consumer market in Azerbaijan (January-November 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-November 2013, the Azerbaijani trading networks sold consumer goods to the population at 17.224.9 billion manat, which is 9.7 percent more than in January-November 2012. Legal entities ensured 12 percent of trade turnover, individual entrepreneurs - 49.9 percent, fairs and markets - 37.9 percent.

The Azerbaijani retail trade facilities sold food worth 8.905.8 billion manat with an increase of 1.3 percent and non-food goods worth 8.319.1 billion manat with an increase of 20.9 percent.

During this period, every citizen of the country acquired consumer goods at 167.6 manat per month or by 15.4 manat more than in the same period of 2012.

Paid services worth 5.667.9 billion manat were rendered to the population during the period, or 7.3 percent more compared to January-November 2012. Legal entities ensured 62.8 percent of this growth and rendered the services worth 4.259.3 billion manat.

Each citizen bought paid services worth 55.5 manat per month in January-November 2013 or 4.9 manat more than in January-November 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 November 2013, the prices on consumer goods and tariffs on services increased by 0.7 percent compared to the previous month and by 2.3 percent in January-November 2013 in accordance with January-November 2012. Thus, inflation in Azerbaijan, which is one of the indices of macroeconomic stability, hit only 2.3 percent in January-November 2013.

Maintaining inflation at such a low level is a very acceptable result for the national economy in terms of a more than ten percent growth in non-oil sector of the country and an improving investment and business climate.

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 2.2 percent, tariffs for services - by 3.4 percent and non-food goods by 0.6 percent in January-November 2013 compared to January-November 2012. Food prices increased by 1.4 percent, nonfood goods - by 0.1 percent, tariffs for services - by 0.1 percent in November.

In November, 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 0.3 percent compared to the previous month and by 0.7 percent compared to January-November 2012.

The industrial producer price index increased by 7.0 percent in November 2013 compared to the previous month, while the prices decreased by 4.5 percent compared to the same period of 2012. The prices increased by 8.2 percent in the oil and gas production in November compared to the previous month and decreased by 6.1 percent compared to the same period of 2012.

As of November, the Producer Price Index in manufacturing industry decreased by 0.2 percent. The prices in wood processing and wood product manufacturing decreased by 1.3 percent, clothing prices increased by 0.1 percent, production of rubber and plastic goods decreased by 1.8 percent.

Prices in the food industry decreased by 2.4 percent, while leather goods, footwear increased by 0.6 percent. The prices on electrical equipment remained at the same level.

The chemical production increased by 2.2 percent, while the production in textile industry decreased by 1.4 percent in November. The furniture production increased by 0.8 percent, while paper and cardboard production - by 0.5 percent.

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

Source: Azerbaijani State Statistics Committee