Inflation is the growth rate of the price index, and the growth tempo of the price index in each sphere is the inflation, for example the consumer price index in consumer market, GBP (Gross domestic product) deflator in global economy, exporting and importing price index in external trade. So, in the world economy, as well as in NKR, inflation is taken into account as the index growth rate of consumer prices. That’s why the central bank aims to increase consumer price index, which is determined by the maximum level of 13%. But inflation, being a specific indicator reflecting the movement of prices in the consumer market, does not correctly testify the growth of consumer expense, as all have specific consumption structure, and that is averaged. Consumption price index in NKR is 6800 according to the weighted average rate of 400 consumption goods by housekeeping and expenditure services. As the poverty rate is high in Armenia (according to National Statistical Service it is 35,1%) so the share of essential consumer goods is high in consumption basket. If potatoes and bread constitutes a large sphere, in the result of growing the prices of the products, the inflation will be higher for these families, than for the families who consume less potatoes and bread and instead consumes the products which prices either haven’t been grown or wane.
Consumer price index characterizes a time change of a common price level (tariffs) for goods and services acquired by households for personal consumption. Producer’s price index for industrial products reflects the dynamics of prices of industrial products produced by organizations Republic irrespective of value added tax and excises. Sale price index for agricultural products reflects the dynamics of change in prices for products of agrarian sector sold through all channels of sales in the reporting period compared with the base one.
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