Prices and situation in consumer market in Azerbaijan (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 22.002 billion AZN in 2014, which is 10 percent more than in 2013. Legal entities ensured 11.5 percent of trade turnover, individual entrepreneurs - 52.5 percent, fairs and markets - 35.8 percent.

According to the Azerbaijani State Statistics Committee, in 2014 the food trade (11.023 billion AZN) increased by 3.9 percent from year to year, while retail sales of non-food products (8.692 billion AZN) - by 16.2 percent. Over this period, every citizen of the country acquired consumer goods at 194.7 AZN per month, which is 18.5 AZN more than in 2013.

During the reporting period, the retail sale volume of non-food items increased by 4.15 times more than the food trade in 2014. Though in December, their growth rate was 22 percent compared to 6.8 percent for food, non-food items did not become the retail sale leader as of 2014 as a year earlier.

Paid services worth 7.016 billion AZN were rendered to the population in 2014 or 7.2 percent more compared to 2013. Legal entities ensured 59.2 percent of this growth and rendered the services worth 5.2 billion AZN.

Each citizen bought paid services worth 62.1 AZN per month in 2014 or 3.6 AZN more than in 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 December 2014, the prices on consumer goods and tariffs on services increased by 0.5 percent compared to the previous month and by 1.4 percent in January-December compared to the same period of 2013.

Thus, inflation in Azerbaijan, which is one of the indices of macroeconomic stability, hit only 1.4 percent.

The lowest inflation for the past 10 years was observed in 2014. This is about five percent less than inflation in the countries-major trading partners. It brings the famous competitive international trade advantages to the economy of Azerbaijan.

The food prices increased by 1.1 percent, non-food items and tariffs for services remained unchanged in Azerbaijan in December compared to the previous month.

The food prices increased by 1 percent, non-food items - by 3.2 percent, tariffs for services - by 0.3 percent in 2014 compared to 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, remained unchanged compared to the previous month and increased by 1.6 percent in 2014 compared to 2013.

According to the State Statistics Committee, food prices in Azerbaijan are moving in different directions. The price on chicken, beef, lamb, cabbage, onions, beets, carrots, greens, apples and pomegranates reduced in December.

The prices on buckwheat, butter, margarine, granulated sugar, milk, eggs, tea, salt, flour, bread, rice, semolina, garlic, potatoes, cucumbers, tomatoes, greens, plums, grapes and pears increased.

The industrial producer price index reduced by 19.6 percent in Azerbaijan in December 2014 compared to November. During this period, producer prices in the mining industry decreased by 22.3 percent, while in the manufacturing industry - by 2.1 percent.

The tariffs for cargo and passenger transportation in Azerbaijan's transport sector increased by 0.1 percent and 2.6 percent respectively in December 2014 compared to November.

The tariffs for passenger transportation by air to the CIS countries increased by 15.5 percent, while by 8.2 percent to other foreign countries during this period.

The tariffs for oil transportation via pipelines increased 0.2 percent in December.

Moreover, the tariffs for passenger transportation by railway to the CIS countries increased 8.7 percent in December.

The tariffs for freight and passenger transportation by vehicles and ships remained unchanged in November.

The production prices on agricultural products in Azerbaijan increased by 1.5 percent in Azerbaijan in December, compared to November 2014.

The prices on annuals and perennials increased by 1.5 percent and 4.9 percent, respectively in December.

The production prices on animal products increased by 0.8 percent in December, compared to November 2014.

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

Source: Azerbaijani State Statistics Committee