Prices and situation in consumer market in Azerbaijan (January-July 2014)

The Azerbaijani consumer market continues developing rapidly (9-10 percent) in 2014. 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 11.843 billion AZN in January-July 2014, which is 9.1 percent more than in the same period of 2013. Legal entities ensured 11.6 percent of trade turnover, individual entrepreneurs - 51.2 percent, fairs and markets - 37 percent.

The Azerbaijani retail trade facilities sold food worth 6 billion AZN with an increase of 3.5 percent and non-food goods worth 5.8 billion AZN with an increase of 15 percent.

During this period, every citizen of the country acquired consumer goods at 179.7 AZN per month or by 16 AZN more than in the same period of 2013.

Paid services worth 3.532.4 billion AZN were rendered to the population in January-July 2014 or 6.6 percent more compared to the same period of 2013. Legal entities ensured 60.8 percent of this growth and rendered the services worth 2.7 billion AZN.

Each citizen bought paid services worth 53.8 AZN per month in January-July 2014 or 2.9 AZN more than in the same period of 2013. 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 2014, the prices on consumer goods and tariffs on services decreased by 0.8 percent compared to the previous month and increased by 1.5 percent in January-July compared to the first seven months of 2013.

Thus, inflation in Azerbaijan, which is one of the indices of macroeconomic stability, hit only 1.5 percent.

Prices for food decreased by 2 percent, non-food goods remained unchanged and tariffs for services increased by 0.2 percent in Azerbaijan in July compared to the previous month.

The food prices increased by 0.9 percent, non-food products - by 3.6 percent, tariffs for services - by 0.4 percent in the reporting period of the year compared to January-July 2013.

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, remained unchanged compared to the previous month and increased by 1.8 percent for seven months compared to January-July 2013.

The industrial producer price index decreased by 3.9 percent in Azerbaijan in July 2014 compared to June.

During this period, producer prices decreased by 4.4 percent in the mining industry, while by 0.1 percent in manufacturing industry.

The producer prices in the field of extraction of stone, sand, salt, gravel increased by 0.4 percent last month. The decrease in producer prices in mining of metal ores in July amounted to 1.1 percent, while a 4.5 percent growth in the oil and natural gas extraction.

The producer prices in wood processing and production of wood products fell by 0.3 percent, in the production of rubber and plastic products - by 2.7 percent, computer, electronic and optical equipment - by 25.3 percent, the textile industry - 7.1 percent, in the sphere of equipment and machinery installation and repair - 5.3 percent, clothing production - 3.6 percent, the chemical industry - 2.5 percent, production of electrical equipment - 1.4 percent, furniture - 0.8 percent, metallurgical industry and building materials - 0.6 percent.

The prices increased in the production of pharmaceutical products by 0.3 percent, petroleum products - 0.2 percent, finished metal products - 0.1 percent. There were no changes in the prices in production, distribution and supply of electricity, gas and steam within a month.

Average market price and indices of basic food commodities in January-July 2014

Source: Azerbaijani State Statistics Committee