PremiumPrices and situation in consumer market in Azerbaijan (2012)

The Azerbaijani consumer market was developing rapidly in 2012 (9-10 percent of the annual growth). The retail trade facilities, catering trade points form the basis of this growth. They are developing in the country both qualitatively and quantitatively.

According to the State Statistics Committee, in 2012, the Azerbaijani trading networks sold consumer goods to the population at 17.559.1 billion manat, which is 9.6 percent more than in 2011. Legal entities and individual entrepreneurs ensured 55.9 percent of trade turnover, fairs and markets - 44.1 percent.

The share of private sector in the retail trade turnover amounted to 99.6 percent. The population bought consumer goods worth 17.493.3 billion manat from the enterprises in 2012 or 9.8 percent more than in the same month of last year.

In 2012, every citizen of the country acquired consumer goods at 158.5 manat per month. The Azerbaijani retail trade facilities sold food worth 9.728.0 billion manat with an increase of 2.1 percent and non-food goods worth 7.831.1 billion manat with a growth of 20.7 percent.

In 2012, food products worth 87.8 manat, non-food products - worth 70.7 manat fall to every citizen in the country per month.

Paid services worth 5.828.1 billion manat were rendered to the population during the period, or 8.0 percent more compared to 2011. Legal entities ensured 6.3 percent of this growth and rendered the services worth 4.4 billion manat.

In 2012, each citizen bought paid services worth 52.9 manat per month, or 3.8 manat more than in 2011. Transportation, public utilities and communication services prevail in the structure of paid services

Prices

2012 was marked by the early deflation processes. Thus, 0.4 percent deflation was observed in April (before including summer seasonal factors). Deflationary processes continued for a long time - five months (April-August).

The growth rates of consumer prices continued in 2012, which began in the second half of 2011. According to the State Statistics Committee, in December 2012, the prices on consumer goods and services increased by 0.7 percent compared to the previous month and by 1.1 percent in January-December 2012 in accordance with January-December 2011.

Consequently, inflation was only 1.1 percent in 2012. This is the recent lowest level with the growth of the population's income by 13.8 percent. That is the difference between inflation and money income is more than 10 percent despite the additional burden for the macroeconomic situation in the country associated with providing citizens with hundreds of millions of manat in the form of compensation for the deposits remaining from the Soviet period. Moreover, the inflation growth rate in the countries - trade partners exceeded the increase in consumer prices in Azerbaijan by five percentage points.

According to the Azerbaijani Central Bank's forecasts on the main directions of monetary and financial stability, preserving inflation at 5-6 percent by influencing the monetary growth rate by classical regulatory tools will be the main goal of monetary policy in Azerbaijan in 2013.

The prices on consumer goods increased by 0.8 percent, tariffs for services by 1.2 percent and non-food goods by 1.0 percent compared to 2011.

Food prices increased by 1.3 percent, nonfood goods and tariffs for services remained at the same level in Dec. 2012 compared to Nov. 2012.

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 0.1 percent compared to the previous month and by 1.6 percent per annum.

As of Dec. the index of producer prices in manufacturing industry decreased by 0.6 percent. The prices in wood processing and wood product manufacturing remained at the same level, clothing - increased by 0.6 percent, production of rubber and plastic goods decreased by 5.3 percent.

Prices in the food industry increased by 0.2 percent, electrical equipment by 0.2 percent, leather, leather products and footwear decreased by 2.6 percent.

Average market price and indices of basic food commodities in 2012

Source: Azerbaijani State Statistics Committee