Inflation of essential foodstuffs was 15.4% in Armenia in September, including 40.2% for pork, 27.4% for eggs, 14.2% for butter, 64.5% for vegetables, 66.7% for potatoes, and 31.1% for sugar. There is, of course, good news: the price of bananas remains low. The reason is clear: we live in New Armenia, where there are no monopolies. But for some reason, the lack of monopolies has a positive effect only on bananas, and in no way affects the price of sugar and butter.
Why is this happening? I think everything is clear for Pashinyan’s electorate. The former regime ordered a raise in prices to provoke public discontent. But the people are not stupid, are they? They understand everything, they do not give in to provocations, they buy the expensive potatoes in hope that the former ones will finally be punished, and the joy of that moment will cause both material and spiritual satisfaction.
But there is a more “complicated” theory, which can be built on the recent comment of the Minister of Economy Vahan Kerobyan, according to which “we have reduced the non-working New Year days so that people do not consume a lot of goods and there is no inflation.” Leaving aside the fact that people consume goods on weekdays, it is not the case that we go hungry five days a week and eat only on weekends. If that were the case, the problem of inflation could have been solved even more thoroughly, eliminating the weekends as well, so that people would consume less goods on those days as well, and in that case there would be perfect cheapness in the country.
But let’s apply the same theory (so to speak, “extrapolation”) to the rise in prices for basic necessities. In that case, it turns out that in September, consumers decided to attack potatoes and pork. Their demand increased and greedy butchers and potato sellers decided to use that moment and raise the prices of these products. I used to think that the main reason for the rise in prices was the shortage of products (and the more potatoes are produced and imported, the cheaper the product will be), but now it turns out that the problem is our unexpectedly inflamed appetite. Reduce consumption, curb our appetites, and everything will be sold cheaply.
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There is a solution to that as well. According to the results of this year, the number of those who did not return from Armenia will be, say, 50,000 people (this is shown by the most modest estimates). But, according to that logic, we who are left here will benefit from it. Why? Consumption will decrease and goods will be cheaper.
By the way, I am in favor of shortening the New Year holidays, but not for the above reasons.
Just after 10 days of laziness, people need another 10 days to return to a normal work rhythm.
Aram Abrahamyan
