Despite deflation, cost of living is twice the legislative index

Slowly but surely inflation eats up the savings of retired state employees. Probably by the end of the year the level of price increase will significantly jump above the 10% of the salary surplus and the 8% of the pension surplus declared by the head of state.

This last month of the second quarter turned out to be "cheap" for consumer prices. These calculations were made by experts of the Center for Economic Research (CER), based on comparisons of consumption on June 1 and July 1 this year.

The specialists, based on the standards provided by the Cabinet of Ministers of April 30, 2009, calculated the cost of living.

According to the calculations, the subsistence minimum for able-bodied population as of June 31 totaled AZN 162.57, while in late May, it was 8 manat more.

For pensioners the living wage was 147.71 manat, and for children under the age of 14 years - 203.04 manat. However, there is still more than twice the difference between the declared legislative and the actual cost of living, which is growing monthly.

Expenditure on food for the working age population averaged 98.60 (-9 AZN) AZN, for pensioners - AZN 89.81, and for children under 14 years - 112.31 manat. Relative reduction in price was associated with "controlled economy", in fact, with the monopolization of all spheres of life.

Expenditure on non-food items does not represent the inherent summer deflation for the working age population, which accounted for an average of 38.49 manat (growth by 25 gapiks), for pensioners - AZN 35.29, and for children under 14 years - 73.36 manat.

Expenditure on services amounted to AZN 25.48, 22.61 and 17.73 manat respectively, which was still in the same position in comparison with the last six months.

Recall that in the Law "On the minimum subsistence level in the Republic of Azerbaijan in 2012" the cost of living has been provided at the level of 108 manat, which is 13 manat, or 9% more than in 2011. The minimum level for the working age population (in 2012) was determined at 116 manat, for pensioners - at 84 manat, and for children under 14 years - at 87 AZN. - 17D-