Prices and situation in consumer market in Azerbaijan (2013 year)

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, the Azerbaijani trading networks sold consumer goods to the population at 19.655.9 billion manat in 2013, which is 9.9 percent more than in 2012. Legal entities ensured 11.9 percent of trade turnover, individual entrepreneurs - 58 percent, fairs and markets - 42 percent.

The Azerbaijani retail trade facilities sold food worth 10.170.4 billion manat with an increase of 2.3 percent and non-food goods worth 9.485.5 billion manat with an increase of 20.2 percent.

During this period, every citizen of the country acquired consumer goods at 176.2 manat per month or by 16.7 manat more than in 2012.

Paid services worth 6.527.3 billion manat were rendered to the population in 2013 or 8.2 percent more compared to 2012. Legal entities ensured 64.1 percent of this growth and rendered the services worth 4.879.8 billion manat.

Each citizen bought paid services worth 58.5 manat per month in 2013 or 5.6 manat more than in 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 December 2013, the prices on consumer goods and tariffs on services increased by 1.9 percent compared to the previous month and by 2.4 percent in January-December 2013 in accordance with January-December 2012.

Thus, inflation in Azerbaijan, which is one of the indices of macroeconomic stability, hit only 2.4 percent in January-December 2013.

Maintaining inflation at such a low level is a very acceptable result for the national economy in terms of an increase in the retail price on petrol, diesel fuel and wholesale price on some oil products in the country.

The retail price on petrol, diesel fuel and the wholesale price on certain petroleum products have increased since December 3, 2013. Moreover, the tariff for the sale of natural gas increased for the enterprises producing electric power, aluminum, chemicals and steel enterprises. Thus, the retail price on a liter of AI -95 petrol is set at 0.8 manat, while the retail price on AI- 92 and AI -80 petrol - 0.7 manat per liter. The retail price on one liter of diesel fuel was set at 0.6 manat. The tariff for the sale of natural gas for the enterprises increased up to 80 manat per 1,000 cubic meters.

The food prices increased by 2.2 percent, tariffs for services - by 3.5 percent and non-food goods by 0.8 percent in 2013 compared to 2012.

Food prices increased by 2.6 percent, nonfood goods - by 2.7 percent, tariffs for services - by 0.4 percent in December.

The prices on lemons, oranges, tangerines, beets, carrots decreased during a month. The prices on flour, rice, pasta, beef and mutton, chicken, fish products, sausages, milk and dairy products, eggs, butter, vegetable oil, apples, pears, quince, pomegranates, bananas, walnuts and hazelnuts, chestnuts, cabbage, greens, potatoes, onions, garlic, sugar increased.

The prices on big tools and equipment, cars, fax machines, jewelry decreased in December. The cost of clothing and footwear, parts for cars, books, fuels and lubricants increased.

The tariffs on passenger transportation by rail and international air flights increased in December 2013.

In December, 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 0.5 percent compared to the previous month and by 0.7 percent compared to January-November 2012.

The industrial producer price index increased by 1.6 percent in December 2013 compared to the previous month, while the prices decreased by 3.9 percent compared to the same period of 2012. The prices increased by 1.7 percent in the oil and gas production in November compared to the previous month and decreased by 5.4 percent compared to 2012.

As of December, the Producer Price Index in manufacturing industry increased by 0.8 percent. The prices in wood processing and wood product manufacturing, clothing prices remained at the same level, production of rubber and plastic goods decreased by 6.3 percent.

Prices in the food industry decreased by 2.3 percent, while leather goods, footwear increased by 1.1 percent. The prices on electrical equipment remained at the same level.

The chemical production increased by 2.0 percent, while the production in textile industry decreased by 0.5 percent in December. The paper and cardboard production remained at the same level.

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

Source: Azerbaijani State Statistics Committee