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Central Bank Predicts Gradual Inflation Rate Drop
YEREVAN, September 18, /ARKA/. The inflation in Armenia will begin to
gradually drop from October to stay within the target projected for
the full year, the Central Bank of Armenia Council said in its
September 7 protocol on refinancing interest rate.
The Central Bank attributes the 12- month high inflation rate to steep
rise of prices of basic staples in August in world markets,
particularly, of wheat, potatoes and fruits. The current inflation
rate exceeds substantially the projected highest ceiling, which is a
serious problem, but having in mind that it was induced by the shock
the Central Bank does not consider this trend to keep on.
At the same time Central Bank experts believe that domestic demand
recovery does not lead to inflationary pressure, while toughening
monetary and credit terms and developments at the foreign exchange
market help the inflation environment to soften. The protocol says the
high inflation rate of 6.25% for transitional and emerging markets was
forecasted by IMF experts for 2010.
According to Armenian National Statistical Service, Armenian inflation
rose by 1.3% in August from July to 9.6% year-on-year. In august food
prices rose by 2.3%, non-foods prices by 0.1% while prices of services
went up by 0.2%. The government projects 4% (±1.5%) inflation rate for
2010. -0--
From: A. Papazian
YEREVAN, September 18, /ARKA/. The inflation in Armenia will begin to
gradually drop from October to stay within the target projected for
the full year, the Central Bank of Armenia Council said in its
September 7 protocol on refinancing interest rate.
The Central Bank attributes the 12- month high inflation rate to steep
rise of prices of basic staples in August in world markets,
particularly, of wheat, potatoes and fruits. The current inflation
rate exceeds substantially the projected highest ceiling, which is a
serious problem, but having in mind that it was induced by the shock
the Central Bank does not consider this trend to keep on.
At the same time Central Bank experts believe that domestic demand
recovery does not lead to inflationary pressure, while toughening
monetary and credit terms and developments at the foreign exchange
market help the inflation environment to soften. The protocol says the
high inflation rate of 6.25% for transitional and emerging markets was
forecasted by IMF experts for 2010.
According to Armenian National Statistical Service, Armenian inflation
rose by 1.3% in August from July to 9.6% year-on-year. In august food
prices rose by 2.3%, non-foods prices by 0.1% while prices of services
went up by 0.2%. The government projects 4% (±1.5%) inflation rate for
2010. -0--
From: A. Papazian