This is his job … – 24 hours
Food in Azerbaijan and the price of daily consumer goods rises again. Price increase is more in imported products, especially, Ukraine, Russia and It shows itself in goods imported from Turkey. To our observations in stores according tomost fat and dairy products, grains, buckwheat, lentils and s. legumes, sugar, alcohol and household detergents 10It has risen in price by -30 percent. The change in the price of agricultural products is measured by a higher percentage. Potatoes, onions, tomatoes, cucumbers and The price of other products does not fit into the pocket of the average buyer. At a government meeting this week PresidentPrime Minister and ministers also discussed price increases. President Ilham Aliyev said that, this year inflation The level was 18 percent. He added that, the incomes of citizens last year 20 interest increased.
UNFood and According to the Agricultural Organization (FAO) according toIn March, world food prices rose sharply by 12.6% to their highest level since 1990. In particular, sugar and There has been a significant increase in the price of dairy products.
Vegetable oils rose in price by 23.2% in March. FAO explains that, Due to the situation in the Black Sea region, the supply of sunflower oil has decreased. As a result, palms, soybeans and Demand for rapeseed oil has increased. Taxes rose by 17.1% that, this is the highest figure since 1990. Prices for most wheat (19.7%) and in feed grains (20.4%) increased. This, Ukraine and It was connected with the interruption of supplies from Russia.
The World Trade Organization (WTO) 20High in the second half of the 00s inflation considers it possible to repeat the food disturbances caused by The head of the WTO, Ngozi Okonjo-Iveala, said that, The conflict in Ukraine and subsequent anti-Russia Against the background of sanctions, popular unrest in the world’s poorest countries seems real.
The world Bankand stated that, Russia’s military intervention in Ukraine has led to a sharp rise in prices for most products. January coal in March compared to the month and oil an average of 25-30%, naturally gas 53% in Europe, liquid gas In Japan, prices rose by 22%, wheat by 30%, fertilizers by an average of 35-40%, nickel by 50% and aluminum by 17%.
Azerbaijan oilgas that it is an exporter according to foreign exchange earnings exceed forecasts several times. But the food of the country and that basic consumer goods are imported according to import inflation is low, weak social aggravates the situation of protected citizens. Because the majority of people from this group in Azerbaijan are left out of state care. That’s it pensionallowance and It also shows the number of people receiving targeted assistance. In this case, how to deal with the losses of imported inflation compensation to become one of the main questions of the day.
Azerbaijani professor, financier at the University of North Dakota, USA Fariz Huseynli reports that, Inflation in Azerbaijan due to global causes snowIt is very difficult to fight. “In most cases, we can’t influence global prices. But we can reduce the impact because these rising prices give us additional oil revenues, – said the expert. The financier then lists the reasons:
“First, the Central Bank currency targeting, while doing so cannot be an independent inflation targeting. If the currency is pegged to the dollar, the US Federal Reserve’s (FED) anti-dollarinflation we depend on measures. They are dollarsAs it strengthens, it will have an anti-inflationary effect for Azerbaijan as well.
Second, let’s say that, We planted a lot of grain. How much territory do we have? that, Let’s affect the world price of grain? Let’s say that, It was soon planted, but why farmer to sell it for a cheap price? The state should buy grain with subsidies and let him bear the cost, which is the burden of the budget. So, the burden must come from someone – the poor and from the economy tax If it turns out, the result will be the same. “
According to F. Huseynli according toprices but transport, tax and the share of domestic causes can be reduced. “In this case, it is necessary not to intimidate the entrepreneur, but to solve their problems. Those problems that, has a boosting effect on prices. It is necessary to put aside the views of the administrator and focus on the ideas that increase and alleviate the economy. Otherwise, the result of trying to solve other problems administratively using inflation will be higher prices.– the financier emphasized.
The professor adds that, Taxes, especially those that affect consumption, can be reduced to some extent: “Which ones that, has a greater impact on the low-income group. Because they spend most of their income on consumption and rising prices have a greater impact on them. Let’s say at the expense of entrepreneurs that, logistics problems, monopoly in domestic price transactions snowIt is possible to increase the opportunities, reduce or postpone taxes and cuts ”.
Fariz This is Huseynli’s approach that, If you can’t reduce the price, then you have to increase the income of the population with direct assistance. There is no need to look at more aggregate statistics. For example, total revenues are said to have increased by 20 percent.
“First of all, we need to look at the median salary, not the average. The average figure is sensitive to large increases.
Second, you need to know the source of the increases. How can incomes increase – with salaries, pension, benefits, direct assistance, rent, interest, or other income. How has the income of the low-income population increased now? At what cost? Who is responsible? So, it is necessary to choose the options that reduce the damage to the private sector and go for growth.
The expert stressed in the end that, Leaving aside the details, the biggest price increase and the Fed, which has a significant impact and is its interest rate policy. “Because we have chosen a policy with a peg currency”– Fariz Huseynli stressed.
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