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Three-to-five-percent price hike expected in Armenia - expert
YEREVAN, July 23. /ARKA/. Consumer commodities in Armenia are believed
to go 3% up because of the increase in electricity prices, Babken
Pipoyan, chairman of the Informed and Protected Consumer NGO, said
Wednesday at a news conference.
On June 7, Armenia's Public Services Regulatory Commission approved
almost a 10 percent rise in electricity prices for households allowing
the Electrical Networks of Armenia distributor to charge 41.85 drams
per 1 kWh of electricity during daylight hours (from 7:00 to 23:00),
up from current 38 drams and 31.5 drams for night hours (from 23:00 to
7:00), up from current 28 drams. The decisions come into force on 1
August 2014.
"Prices for consumer goods will jump 3%, and those for first-priority
goods may leap even 5% as a result of disguised increase," Pipoyan
said.
He explained what he meant by saying "disguised". The thing is that
the producers reduce weight of some products leaving the price
unchanged. Very often containers, packs and even labels of such
products remain unchanged as well, and weight is written in very small
and almost invisible characters, and therefore consumers don't guess
that the prices have been increased.
The expert said that in developed countries a ten-percent increase in
electricity prices drive prices for consumer prices 1-1.5% up, while
in Armenia the power price rise triggers incommensurable price hikes.
"This happens in Armenia, since not a single economic entity has ever
been punished for inadequate increase of prices," Pipoyan said.
In his opinion, electric power price rise may have also another
adverse effect - owners of stores, especially small, will start saving
electric energy for paying less money for that, and this may affect
the temperature regime necessary for preserving foods posing threat to
consumers' health. ($1 - AMD 406.84). --0---
- See more at: http://arka.am/en/news/society/three_to_five_percent_price_hike_expected_in_armen ia_expert/#sthash.bHgBP8Bq.dpuf
YEREVAN, July 23. /ARKA/. Consumer commodities in Armenia are believed
to go 3% up because of the increase in electricity prices, Babken
Pipoyan, chairman of the Informed and Protected Consumer NGO, said
Wednesday at a news conference.
On June 7, Armenia's Public Services Regulatory Commission approved
almost a 10 percent rise in electricity prices for households allowing
the Electrical Networks of Armenia distributor to charge 41.85 drams
per 1 kWh of electricity during daylight hours (from 7:00 to 23:00),
up from current 38 drams and 31.5 drams for night hours (from 23:00 to
7:00), up from current 28 drams. The decisions come into force on 1
August 2014.
"Prices for consumer goods will jump 3%, and those for first-priority
goods may leap even 5% as a result of disguised increase," Pipoyan
said.
He explained what he meant by saying "disguised". The thing is that
the producers reduce weight of some products leaving the price
unchanged. Very often containers, packs and even labels of such
products remain unchanged as well, and weight is written in very small
and almost invisible characters, and therefore consumers don't guess
that the prices have been increased.
The expert said that in developed countries a ten-percent increase in
electricity prices drive prices for consumer prices 1-1.5% up, while
in Armenia the power price rise triggers incommensurable price hikes.
"This happens in Armenia, since not a single economic entity has ever
been punished for inadequate increase of prices," Pipoyan said.
In his opinion, electric power price rise may have also another
adverse effect - owners of stores, especially small, will start saving
electric energy for paying less money for that, and this may affect
the temperature regime necessary for preserving foods posing threat to
consumers' health. ($1 - AMD 406.84). --0---
- See more at: http://arka.am/en/news/society/three_to_five_percent_price_hike_expected_in_armen ia_expert/#sthash.bHgBP8Bq.dpuf