The Price Increase of Sugar, Oil, and Butter is Primarily Due to Objective Factors: PPA

The Public Protection of Economic Competition Commission of Armenia has released a statement indicating that the increase in prices of sugar, oil, and butter is primarily due to objective factors. Below is the message from the Commission:

“During the state of martial law declared in Armenia, working groups have been established to collect, analyze, and evaluate information regarding the conditions of sale, including prices and supplies of essential consumer goods. Since September 27 of this year, these groups have been conducting daily monitoring in major retail chains, including “SAS”, “Eureka”, “Yerevan City”, and “Nor Zovk”, covering about 31 product groups (approximately 106 types of products).

To identify the reasons for the recorded price increases as well as to clarify and assess the justification of these increases, the Commission has conducted a comprehensive study, while also analyzing the dynamics of international prices for these products.

The Commission has examined the retail prices of the aforementioned products, compared them with previous day data, and conducted studies for specific product types where price increases were recorded. Additionally, the Commission has reached out to around 32 major companies engaged in import and production, and has collected daily data regarding wholesale selling prices and inventory balances for around 20 product groups (including 129 product types).

In cases of detected price increases, detailed studies were conducted, and operational inquiries were made from economic operators for justifications and explanations, along with necessary calculations and, if required, follow-up monitoring.

As a result of monitoring, the Commission specifically noted that in some trading facilities belonging to major retail chains, the selling price of unpackaged sugar increased by 6-7%, the selling price of “New Zealand” and “Ankor” butter increased by up to 1%, and the prices of certain types of sunflower and corn oils rose by 2-7%.

Research has shown that the increase in selling prices for these products is primarily attributed to a number of objective factors, including higher import prices, depreciation of the national currency, and rising international prices, among others.”