Prices Rising Day by Day in Armenia: Comparative Analysis

Prices of almost all goods are rising day by day in Armenia. This means that inflationary pressure has not retreated for several months now. The authorities claim that the price increases are mainly due to the customs regulations of the EAEU.

However, against the backdrop of stable inflation, neither wages nor pensions are increasing for the people. This is just one side of the issue. It turns out that essential food items are sold in Yerevan at higher prices than, for example, in Krasnodar, located in southern Russia.

The newspaper "Hayastani Zhamanak" managed to clarify the prices of certain goods from our compatriots: accordingly, one egg costs 70-75 drams in Krasnodar, whereas in many stores here it is not less than 90 drams, reaching 110-120 drams. The situation is similar for poultry meat; in Krasnodar stores, one kilogram of chicken sells for 945-1050 drams, while in Yerevan, it costs 1300-1400 drams. The price of 1 liter of oil in Krasnodar is 1050 drams, but in Armenian stores, it exceeds 1200-1300 drams.

According to economist Gagik Makaryan, goods in Armenia may be more expensive because our processing costs higher energy prices than in Russia. "Part of our products’ imports are determined by external prices, and Russia is a self-sufficient country; Krasnodar’s agriculture is rich. Consider the high transportation prices, especially now when the dollar exchange rate has increased, and transportation and international delivery costs have also risen. Being a member of the EAEU does not mean that prices should be the same everywhere. Furthermore, the tax policy differs; we bring in goods from EAEU member states—true, we do not pay customs duties, but the VAT is high, whereas in Russia, they are differentiated," the expert explained.

Another economist, Tatul Manaseryan, believes that the EAEU is a single economic market, and crisis phenomena, including food crises, occur; thus, member countries should have no problems collaborating and filling the gaps. "Armenia can export poultry when there is a surplus, and first and foremost, our partners should consume it. If prices are skyrocketing and the government does not perform monitoring, then at least business literacy or awareness must be high so that people can address this issue promptly," the newspaper writes.

The full article is available in today’s issue of the newspaper.