AZE.US
Food prices on global markets recorded a slight decline in January compared with December.
According to the relevant U.N. agency, overall food prices fell by 0.4%. Lower prices for meat, dairy products and sugar outweighed increases in cereals and vegetable oils, leaving the overall index down for a fifth straight month.
Consumers in Azerbaijan, however, say they have felt none of that relief. On the contrary, residents in Baku say meat, milk, sugar and especially butter have continued to rise in price.
Buyers say staple foods have seen some of the sharpest increases over the past year and a half.
Some say lamb has gone up by 2 to 3 manats, while beef has risen by around 1 manat, to about 17 manats per kilogram. Lamb is now selling at around 21 manats per kilogram, while butter has become 3 to 5 manats more expensive.
Sellers broadly confirm the increase. According to them, over the past five months meat has risen by around 1 to 1.5 manats, milk by 20 to 30 qepiks, and sugar by about 10 to 11 qepiks. Granulated sugar is now selling for around 1.70 manats.
As for current prices, loose milk is sold at roughly 1 to 1.5 manats per liter, while packaged milk in stores ranges from 2.20 to 3 manats depending on the brand and fat content. Higher-fat varieties can cost as much as 3.20 manats.
Economist Eyub Karimli says the situation reflects Azerbaijan’s heavy dependence on imported food products.
According to him, even when prices begin to fall on foreign markets, that decline does not immediately reach the domestic market.
One reason is long-term import contracts. Another is that some goods were purchased earlier at higher prices and are still sitting in warehouses. Until those stocks are sold, a noticeable drop in retail prices is unlikely.
Logistics, transport costs and other expenses also continue to push up the final price paid by consumers.
The result is a familiar pattern for the local market: while food prices are easing globally, meat, milk and sugar in Azerbaijan are still rising, or at least showing little sign of coming down anytime soon.