The Consumer Price Index published by the National Statistical Service as of December 2017 is an unusual self-confession compared to of December 2016, according to economist Artak Manukyan. President of the “National Centre for Public Policy Studies” Artak Manukyan calculated the 20 essential goods of the consumer basket presented by the NSS, whether what impact they had on the overall inflation.
Accordingly, as, he said, the total percentage of price reduction registered by those products is 68 percent, which is affecting the consumer basket by 7.5 percent, whereas the price increase is 267 percent, which impact on the basket is 15 percent.
According to Manukyan, “The biggest impact on prices rise is of butter and boneless beef, both in terms of price and ratio. And the drop of apple prices affected the reduction most. Formally, we can have 1 percent inflation, but when we look at its qualitative aspect, it is a double-digit number for a wide range of population”.
Besides apple price, prices of mixed greens have also been dropped, by 48.5 percent. As the economist noted, in fact, those goods have become cheaper that have no significant impact on the consumer basket to improve the quality of life.
ANC member, economist Vahagn Khachatryan referring to the new tax rates which relate to excise taxable items, said that this document had been put into circulation at the National Assembly, and all MPs were informed about their impact on inflation.
Khachatryan said that the excise tax on oil products in Russia has risen.
As to the state budget, the economist said that this is a budget of inflation.
“State budget revenues will increase by 100 billion dram. How? This is interesting, here it is clearly stated. The Central Bank says there is no need to worry about inflation, we control the market. But it is unclear why, in that case, the they hold a Council session in the National Assembly, hold a consultation with the president. In a country with 30 percent poverty, price-rise of any product should not be ignored. If we narrow down the group of the food basket products further, making it about 50, inflation will be not 2.5 percent, but minimum 15 percent”, said Khachatryan.
Nelly BABAYAN
