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Economy

High supply of domestic products and low demand curbed inflation in December, growth 1.1%

  • 1/13/2021 11:23 PM
High supply of domestic products and low demand curbed inflation in December, growth 1.1%

The phenomenon of rising prices on the eve of the end of the year holidays has ended, as it can be seen that the inflation rate during December was only 1.1 percent. The growth was at the same level in December 2019. During 2020, the average annual price increase was 1.6% from 1.4% in 2019.

Retailers claim that there are two reasons for the low prices in December. The first is the growing supply of local products in a variety of items previously imported during this period and the second a new trend of not buying en masse for the year-end holidays.

INSTAT refers that the annual price increase in December was mainly influenced by the group "Food and non-alcoholic beverages" with +0.95 percentage points, followed by the group "Rent, water, fuel and energy" with +0.24 percentage points .

Prices of the group "Furniture, home appliances and home maintenance" have contributed +0.07 percentage points. Prices of the group "Various goods and services" have contributed +0.05 percentage points. The prices of the groups "Alcoholic beverages and tobacco" and "Hotels, cafes and restaurants" have contributed +0.03 points each. Prices of the "Communication" group have contributed +0.02 percentage points.

The prices of the group "Entertainment and culture" have contributed with +0.01 percentage points. Prices of the group "Transport" have contributed with -0.31 percentage points. Prices of the group "Clothing and footwear" have contributed -0.02 percentage points. Prices of the "Health" group have contributed with -0.01 percentage points.

Compared to December 2019, the largest increase in prices is observed in the group "Food and non-alcoholic beverages" by 2.5%, followed by the groups "Rent, water, fuel and energy" and "Furniture, home appliances and home maintenance" "With 1.2% each," Alcoholic beverages and tobacco "with 0.9%," Hotels, cafes and restaurants "and" Miscellaneous goods and services "with 0.7% each," Communication "and" Entertainment and culture ”With 0.5% each. On the other hand, the prices of the group "Transport" decreased by 4.9%, followed by the groups "Clothing and footwear" by 0.6% and "Health" by 0.2%.

Within the food group, the prices of the subgroup "fruit" increased by 5.9%, followed by the subgroups "oils and fats" by 4.5%, "vegetables including potatoes" by 3.9%, sugar, jam, honey, chocolates, and cakes ”by 2.2%,“ fish ”by 2.1%, etc.

Compared to November 2020, the prices of the group "Food and non-alcoholic beverages" increased by 0.7%, followed by the groups "Furniture, home appliances and home maintenance" and "Transport" by 0.2% each, "Alcoholic beverages" and tobacco ”,“ Clothing and footwear ”and“ Rent, water, fuel and energy ”with 0.1% each. On the other hand, the prices of the group "Entertainment and culture" decreased by 0.2%, followed by the groups "Communication" and "Miscellaneous goods and services" by 0.1% each.

/Klara Ruci/