Some Product Price Increases are Market-Driven, Others Are Not

The Consumer Awareness and Protection NGO has conducted observations in the market during the pre-holiday period and found that certain products have increased in price.

In an interview with Tert.am, the NGO's president Babken Pipoyan noted that aside from general price increases recorded elsewhere, which are not necessarily related to the pre-holiday season, it can be clearly stated that the prices of certain agricultural products have also risen.

“However, from the perspective of the average citizen, it cannot be excluded that many other items might have gone up in price,” he said.

He gave the meat market as an example, stating that according to their observations, the purchasing price for meat has not changed, yet the price for specific cuts, such as pork shoulders, has risen.

“The businessman continues to buy meat from farmers at the same price, and I will add that the revenue per animal remains nearly the same. However, what is happening is that when the demand for a specific product group increases—for instance, if the demand for shoulder meat has risen—then the price for that has increased compared to previous levels. In contrast, some side cuts have decreased in price. Now, the person who bought the neck piece knows they purchased it at a lower price, whereas the person buying the tender cut sees they have bought it at a higher price,” he explained.

According to Pipoyan, the price increases of certain products are market-driven, while others are not, such as flour.

“There’s an approximate price increase of 500 drams per bag of flour; there are various interpretations, starting from transportation issues,” he said, also considering transport issues related to recent short-term decisions at the Georgian border.

“However, certain groups of products were imported at that time, and their costs increased slightly. We need to wait for the next batches to understand whether this price increase should be linked to transportation or not,” he said, noting that he does not believe there are any issues of price manipulation at this stage. “We should not jump to conclusions about manipulation; some time must pass before taking appropriate measures if regulations are not established regarding this,” he added, as there has been no change in the price of flour on the international market.

It is worth noting that the State Commission for the Protection of Economic Competition confirmed that the wholesale price for 1 kilogram of premium flour has risen from 217 drams to 226 drams compared to last month. The Armenian Competition Authority mentioned they have begun an investigation to determine the cause of the price changes.