YEREVAN, October 28. / ARKA / The inflation in Armenia will be brought down to the confidence band of 4%±1.5 pp by mid- 2014 , Central Bank Chairman Arthur Javadyan said today during a parliament discussion on 2014 draft budget.
The inflation in January- September 2013 rose by 5.6 percent year-on-year pushing the 12 -month inflation in late September up to 8.2%.
According to Javadyan , the inflation was pushed up beyond the projected index in July by a significant rise in prices of natural gas and electricity.
He said the direct or indirect effect of energy prices hikes on inflation was about 3%. In order to mitigate this effect the Central Bank increased the key refinancing rate by 0.5 percent to 8.5 percent, he said.
Under the draft 2014 budget, the 12-month inflation rate is projected from 2.5 to 5.5 percent. ($1 - 405.76 drams). -0-