Central Bank Predicts Gradual Inflation Rate Drop
19.09.2010,
00:58
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.
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--
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--
