Azerbaijan is among the countries with high food costs in the total consumer basket

Baku/19.08.23/Turan:  In 2023, Azerbaijan is facing significant inflation, with an average rate of 12%, according to a report by the international rating agency S&P Global Ratings. This high inflation has led to elevated prices for food items in Azerbaijani stores. While Armenia experienced deflation at -0.1% during the same period, the situation in Azerbaijan contrasts sharply. Notably, food prices have been particularly affected. Although the cost of vegetables and fruits in Azerbaijan is slightly lower than in Russia during the summer months, the prices of meat and chicken surpass those in both Azerbaijan and Russia, being three times higher than the equivalent indicators in Moscow, where 1 kg of beef costs 350 rubles, or 6 manats.

The State Statistics Committee of Azerbaijan confirms this trend, reporting that despite seasonal reductions in plant product costs, the average monthly expenses of the population have increased. From January to July 2023, the average monthly retail trade turnover per capita reached 437.9 manats, reflecting a 15.3% increase (58.1 manats) compared to the same period in 2022. Additionally, the average monthly nominal salary of employees in Azerbaijan rose by 11.5% from January to June 2023 compared to the prior year, amounting to 921.9 manats. However, it's important to note that certain segments of the population, such as tutors, repairmen, and farmers, work in sectors where state-reported incomes might not be fully representative.

As a result of these economic challenges, Azerbaijan has experienced a decline in its standard of living on global rankings. Independent foreign analytical services have placed Azerbaijan alongside underdeveloped African countries, a stark contrast to its neighboring countries like Russia, Georgia, Armenia, Turkey, and Iran, which enjoy more favorable rankings in the middle tiers.

Statistical analysis conducted by Picodi.com across 105 countries reveals varying expenditure patterns on food around the world. Depending on the country, food and soft drinks consumed at home account for differing percentages of consumer spending. For instance, countries like the USA (6.7%), Singapore (8.4%), Great Britain (8.7%), Ireland (9.2%), and Switzerland (9.9%) allocate less than one-tenth of their expenditures to these items.

In this context, Latvia ranks 40th among the 105 countries surveyed, allocating 19.3% of spending on consumer goods and services to food and non-alcoholic beverages. Estonia follows at 46th place (20.2%), and Lithuania at 48th (21%). Russia occupies the 69th position (29%), while Georgia stands at 79th (32.3%). Countries like Turkmenistan (84th place, 36.9%), Moldova (41.1%), Azerbaijan (43.6%), and Uzbekistan (46.5%) are positioned lower in the ranking.

Among these countries, the highest percentage of expenditures on food is found in Nigeria (59%), Myanmar (56.6%), and Kenya (56.1%).

When it comes to Europe and Central Asia, Switzerland, Norway, and Denmark lead in terms of food costs due to generally high prices in these nations. For instance, monthly food expenses for an average Swiss resident are $359/325 €, while Norwegians spend $341/308 €, and Danes spend $311/281 €. Comparatively, the average Lithuanian spends €218/$241 per month, Estonians allocate 197 €/218 $, and Latvians allocate 164 €/181 $ to food.

Moving to the Caucasus region, Russia's average monthly food expense is $146/€132, Georgia's is $116/105 €, and Azerbaijan's is $102/92 €. Moldova follows with $97/88 € per month. In contrast, Turkmenistan and Uzbekistan report the lowest food expenses at $26/24 € and $40/36 € per month, respectively.