Azerbaijan's Consumer Price Index Rises Slightly in May, Food Prices Decline

BAKU, July 9 (Reuters) - The consumer price index (CPI) in Azerbaijan for May 2024 increased marginally by 0.3% compared to May 2023, according to the State Committee on Statistics (SSC). The breakdown shows a decrease of 1.4% in food, beverages, and tobacco products, an increase of 1.0% in non-food products, and a rise of 2.2% in paid services provided to the population.

In its statement, the SSC highlighted that the CPI for food, beverages, and tobacco products in May 2024 was 99.3% compared to the previous month and 99.2% for the January-May period year-on-year.

The data reveals that the CPI for food products specifically in May 2024 was 98.2% compared to May 2023, and 98.8% for the January-May period compared to the same period last year.

Breaking down the monthly CPI changes for May 2024, the SSC reported:

• Bread, bakery products, and cereals: 100.3%
• Meat and meat products: 100.4%
• Fish and fish products: 99.5%
• Milk and dairy products: 100.5%
• Butter and vegetable oils: 100.2%
• Eggs: 75.2%
• Fruits: 101.5%
• Vegetables: 96.2%
• Sugar, jam, honey, chocolate, and sweets: 100.3%
• Tea, coffee, cocoa: 100.7%

Among these categories, the most notable price increases were for fruits (up 1.5%), milk and dairy products (up 0.5%), and meat and meat products (up 0.4%).

According to the SSC, price increases in May 2024 compared to the previous month were observed in rice, flour, pasta, lamb and chicken, sausages, sour cream, yogurt, butter, olive oil, lemons, apples, and cabbage. Conversely, price decreases were noted for buckwheat, fresh fish, unpasteurized skimmed milk, eggs, margarine, sunflower oil, corn oil, bananas, strawberries, tomatoes, cucumbers, sweet peppers, eggplants, string beans, garlic, and onions.

Despite the increased production of basic livestock products over the first five months of 2024, import and sales prices for these products have risen. Meat and meat product prices increased by 0.4%, milk and dairy products by 0.5%, and butter and vegetable oils by 0.2% in May compared to the previous month.

According to agro expert Vahid Maharramov, although agriculture showed growth in the period from January to May, SSC studies show that agricultural production in Azerbaijan remains unstable, often fluctuating from year to year. The repeated cycles of increase and decrease in agricultural production highlight ongoing challenges in the sector.

Maharramov emphasizes the need for the Azerbaijani government to urgently address these issues to stabilize and develop the agricultural industry. Suggested measures include restoring land fertility, reconstructing the irrigation system, educating farmers and peasants, and training qualified specialists.