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ASATRYAN: INFLATION IN ARMENIA BELIEVED TO BE A LITTLE LOWER THAN 10% THIS YEAR
/ARKA/
December 24, 2010
YEREVAN
YEREVAN, December 24. /ARKA/. Inflation in Armenia is believed to be
a little lower than 10% this year, Bagrat Asatryan, former chairman
of the Central Bank of Armenia, said Thursday answering the question
ARKA News agency correspondent put up to him.
He said that the high inflation would strike hard at low-income people.
According to official statistical reports, the country faced 8.1%
year-on-year inflation in Jan-Nov 2010.
In the 2010 government budget, inflation is projected at 4% (±1.5%).
Asatryan said that a double-digit inflation was recorded also in 1997.
The then inflation was due to many factors, and administrative factor
was among them.
The 1997 inflation was due to the continuing liberalization of prices,
not economic developments, and was structural in nature.
Unlike the then inflation, this year's price hike is not triggered
by monetary factors - the central bank's instruments have proven to
be ineffective.
The former chairman said that the regulator started neutralizing
impacts monetary factors on inflation of in the beginning of this year,
but this move produced no results.
He said that the Armenian national currency strengthened 5.5% against
the dollar, 15% against the euro and over 7% against Russian ruble,
compared with December 2009.
It means, he said, that the central bank remains stuck to its policy
and is trying to curb inflation by strengthening Armenian dram.
From: A. Papazian
/ARKA/
December 24, 2010
YEREVAN
YEREVAN, December 24. /ARKA/. Inflation in Armenia is believed to be
a little lower than 10% this year, Bagrat Asatryan, former chairman
of the Central Bank of Armenia, said Thursday answering the question
ARKA News agency correspondent put up to him.
He said that the high inflation would strike hard at low-income people.
According to official statistical reports, the country faced 8.1%
year-on-year inflation in Jan-Nov 2010.
In the 2010 government budget, inflation is projected at 4% (±1.5%).
Asatryan said that a double-digit inflation was recorded also in 1997.
The then inflation was due to many factors, and administrative factor
was among them.
The 1997 inflation was due to the continuing liberalization of prices,
not economic developments, and was structural in nature.
Unlike the then inflation, this year's price hike is not triggered
by monetary factors - the central bank's instruments have proven to
be ineffective.
The former chairman said that the regulator started neutralizing
impacts monetary factors on inflation of in the beginning of this year,
but this move produced no results.
He said that the Armenian national currency strengthened 5.5% against
the dollar, 15% against the euro and over 7% against Russian ruble,
compared with December 2009.
It means, he said, that the central bank remains stuck to its policy
and is trying to curb inflation by strengthening Armenian dram.
From: A. Papazian