How do the Prime Minister and the opposition leader calculate inflation? |
One of the most discussed topics in Azerbaijan this year rise in price it happened The price of almost all goods and services has increased. Official figures also confirm that inflation in the country is at its peak in recent years. Expensive it has become one of the most talked about topics by politicians as well as ordinary citizens. Both government representatives and opposition politicians often touch on the issue of price increases in their speeches. Government representatives attribute the increase to external factors. According to them, in Azerbaijan rise in price caused by global factors rather than internal causes. Opposition politicians accuse the government of not effectively fighting price increases.
It should be taken into account that about 60 percent of the population’s expenses in Azerbaijan are precisely food catches the products. From this point of view, whatever the reason, the price of food for people social seriously affects his well-being.
Food prices 60 percent increase?
These days Prime Minister Ali Asadov too inflation touched on the issue. he National In his speech at the plenary session of the Assembly, he said that “in the past period of the current year, double-digit inflation, was mainly formed due to the increase in the price of food by more than 60 percent. This statement of the Prime Minister can be considered a sensation, because in most cases in Azerbaijan, government officials state that such indicators are at the minimum level. It should be taken into account that the figure announced by the prime minister is even announced by the State Statistics Committee inflation is several times higher than its indicator. Along with the Prime Minister, he is represented in the opposition Azerbaijan People’s Front Party (PFCP) chairman Ali Karimli in the statement he made today, speaking about the price increase, he said that in the country prices It has increased by 43 percent.
What does the State Statistics Committee say?
Inflation in Azerbaijan is measured by the State Statistics Committee (SSC). According to the latest indicators announced by the institution, the average annual inflation in Azerbaijan during the first 11 months of this year was 13.8 percent. This is the highest result recorded in recent years. For example, 2018-2020Inflation rate announced in the country was less than 3 percent. In 2015, when the manat lost its value twice, and in 2016-2017, when the country’s economy experienced a serious crisis, the inflation rate was not so high, it was announced at a maximum of 12.9 percent.
If only food inflation is overlooked, food it turns out that the price increase for products is higher than the general inflation. In the country in the first 11 months of this year food inflation 20It was .2 percent. Compared to the same month last year, the price increase is relatively higher – 20.8 percent.
Prime Minister what does it mean?
The SSC calculates food inflation based on the average market price of a basket that includes about 130 food products. Looking at the price indicators for individual food products, a very serious price increase is noticeable in some products. For example, the most expensive food product in the country in the last year is bread. According to official figures, in the last year in Azerbaijan bread 57 percent has increased in price. There are also serious price increases in products that have an important share in the population’s diet, such as potatoes (51 percent), solid oils (35 percent), sugar powder (25 percent). However, these indicators do not show the source of the number announced by the prime minister. Only the report on the monetary policy overview of another official body – the Central Bank – clarifies the matter a little. In that statement, it is stated that the share of food in the formation of the general annual inflation increased from 53 percent in September of the previous year to 60 percent in September of the current year. In other words, the share of food products in the formation of the general inflation index in the country is 60 percent. It should not be forgotten that not only food products, but also non-food products are taken into account when calculating the inflation index for the country. From this point of view, it can be assumed that Prime Minister does not know the impact of food products on the price of food and the methodology of calculating inflation.
Another possibility Ali It is Asadov’s inability to express his opinion correctly. It should be noted that the prime minister Azerbaijan he can’t speak his language that well. His Azerbaijan It is often discussed that he has difficulty in reading the prepared text in his language. In any case, whatever the reason, the prime minister’s ignorance of inflation calculation or inability to speak his mother tongue properly is worthy of criticism.
The indicators announced by the Central Bank make it possible to understand Prime Minister Ali Asadov’s statement on inflation. However PFCP chairman Ali Karimlinin It remains unknown from which source he used the figure he announced regarding the inflation indicator. After all, that number is far from official indicators. At the same time, alternative inflation calculations are not carried out in the country, because the difficulties created for civil society and independent experts make it difficult to realize this type of alternative calculations. Moreover, such large-scale works require serious material and human resources.
There is also the fact that independent experts also often voice critical opinions about the indicators announced by the SSC. The main criticism of the inflation indicator is related to the composition of the basket used by the government in calculating inflation. The composition of the basket used to determine the level of inflation in Azerbaijan is wider than in some other countries. In this regard, according to independent experts. if the basket includes goods and services that the population spends more money on, the real inflation rate may be higher.
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