TODAY.AZ / Business

Prices hike encouraged by better living standard in Azerbaijan, state top body claims

27 April 2007 [08:33] - TODAY.AZ
The recent prices increase has been caused and encouraged by better living standard in the country. The inflation keeps pace with the increasing earnings, Azerbaijan's State Statistical Committee chair Arif Valiyev told a press conference.

He said that incomes have continued to push inflation up since 1992 in the developing economy.

Incomes rose 8% and inflation 10% in 1992, incomes 9% and inflation 12% in 1993, 9% and 17.6% in 1994. Some measures were taken in 1995. The inflation was curbed to 5.1% in that year. Incomes jumped 29% and inflation 3.7% in 1997, incomes rose 8%-9% and inflation 1.8%-2% in 2001-2002. Incomes leaped in 2003. The revenues hit 26% and inflation 10% in 2005, incomes increased 23% and inflation 8.3% in 2006. For the first quarter of 2007 revenues skyrocketed 35% and inflation 16.6%, he explained.

Arif Valiyev attributed the high inflation rate to monopolism. He expressed hope that the rate will slow down to single figures by the year-end, adding that "it will be more opportune to forecast the trajectory after the second quarter."

We always see deflation in summer months. We expect this to come after the second quarter, he added.

The committee chair said non-food products were most affected by the price rise during the first quarter this year.

The price of foodstuffs rose 11% while nonfoods 21%. This is evidence showing an increase in earnings. People spend between 90% and 95% of their take-home incomes on food. When they earn more, they buy non-foods like furniture, conditioner and other things, he underscored. APA-Economics

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