PremiumPrices and situation in consumer market in Azerbaijan (January-March 2011)

In January-March 2011, a rise of the retail goods turnover got restored amid continuing rise of the community services and was 9.5%. The amount of retail goods turnover comprised 4.9bln. In particular, 70 percent accounted for retail sales, 26.9 percent - paid services.

In January-March 2011, the trading networks of Azerbaijan sold population consumer goods at 3 765.4 million manat, which is 9.2% more than 2010. Legal entities provided 12.9% of turnover, fairs and markets - 42.7%, individual entrepreneurs - 43.7%.

In January-March 2011, the paid service rendered to population amounted to 1 170.6 million manat, which is 10.2 percent more as compared with 2010. Individual entrepreneurs provided 73.4 percent of services, legal entities - 26.5 percent with growth of 12.0 percent and 5.6 percent respectively.

In January-March 2011, every citizen of the country acquired consumer goods and paid services at 182.6 manat that is 17.6 percent higher than 2010, indicating that the purchasing capacity of citizens has increased. The average turnover per one citizen at 162.4 manat (93.1 percent) was provided by the private sector.

In connection with the rapid economic development and population growth in prosperity, the Azerbaijanis preferred to global brands for many commodities, including alcoholic beverages, cigarettes and other tobacco products, motor vehicles, etc.

Prices

In March 2011 , the prices for consumer goods and tariffs for services rose 1.1 percent compared with the previous month, and compared to January-March 2010 grew by 9.1 percent in 2010 (data from State Statistics Committee). The main reason for rise in prices on the consumer market of Azerbaijan is the rise in oil prices on world markets. In assessing the characteristics of the domestic market, it needs to definitely take into account the fact that the country imports a large amount of food products and 60 percent of inflation in the country was provided through imports. Another reason for rise in prices is the subjective factors - artificially inflated prices by some entrepreneurs.

The prices for food products in March 2011 rose 1.8 percent compared to February 2011, non-food products prices rose 0.2 percent, and tariffs for service - 0.3%.

Compared with January-March 2010, food prices grew by 13.4 percent, non-food products - 2.8 percent, and tariffs for the service sector - 3.1 percent.

In March 2011, the base index of the consumer prices incurring seasonal changes (fruits and vegetable) and being regulated by the Government rose by 0.1% as compared to the previous month, and 6.2% to January-March 2010.

As compared to the previous month, in March 2011 the index of industrial goods price remained unchanged, but rose 0.8% compared to the same period of the last year.

The price in oil and gas production remained unchanged in March 2011 compared to previous month, but declined 0.5% compared to the same period of 2010.

The prices in refining chemical products increased 0.4% in the month, but increased 16.2% annually.

In March 2011, the prices in metallurgy remained unchanged compared to the previous month, but rose 13.5% during the year. The prices for electricity, gas and water remained unchanged compared to previous month, but during the year dropped 0.2 percent.

In March 2011, production prices for agricultural products rose by 1.4 percent compared to February, but rose 13.8 percent compared to the same period of the last year.

Prices for forestry products in March remained unchanged, for fish and fish products grew by 1.4 percent compared with February, but in the first quarter declined by 6.9 percent during the year.

The total amount of agricultural production in January-March was 473.697 million manat, which is 19.83 percent more compared to the same period of last year.

In the first quarter of 2011, agricultural production in Azerbaijan has grown by 5.3 percent compared to the same period of last year, including crop production - 6.6 percent, livestock production - 5.3 percent.

Cost of forestry goods for the period amounted to 370,000 manat compared to 331,800 manat in January-March last year, the fishery - 39,300 manat compared to 39,800 manat, hunting - 1,500 manat compared to 600 manat.

Average price indexes and basic food commodities
in January-March 2011

Source: State Statistics Committee