Finance Minister: no major inflation risks expected in Armenia this year

YEREVAN, October 28. /ARKA/. Armenia will face no major inflation risks this year, Finance Minister Tigran Davtyan said Wednesday answering ARKA News Agency’s question.

“The nine months’ inflation is quite low and doesn’t get out of the limits set by the state budget.”

According to statistical reports, 2.8% inflation was recorded in Armenia in Jan-Aug 2009, compared with the same period a year earlier, and 0.4% deflation was recorded in August, compared with the previous month.

Davtyan said that domestic products showed deflation, and inflation , he thinks, are brought to the country from the outside.

The minister said that the government planned quite low inflation in the 2010 state budget – from three to four percent.

The deflator index is planned to be 2% in 2010. 

“Major inflation risks are unlikely this year, but recovery of the global economy and economic growth pace may increase inflation risks in coming years.”

If so, the government will make some corrections in its policy, and replace the current expansionary policy with deterrent.

The government has planned 4% (±1.5%) inflation in the 2009 state budget. ---0---