CBA ENSURES PLANNED INDEX OF PRICE GROWTH IN 2004
YEREVAN, MAY 26, NOYAN TAPAN. In 2004, the Central Bank of Armenia
(CBA) succeeded in ensuring the index of price growth planned at up to
3%. A 2% price growth was registered in late 2004 compared with
December of 2003. The average annual price growth made 7% against the
planned index of 7.7%. CBA Chairman Tigran Sargsian stated this at the
May 25 meeting of the RA National Assembly when presenting the annual
account of the Bank activities in 2004. According to him, the
developments that took place in the economy with respect to the
implementation of the monetary and credit policy, in particular an
unprecedented increase in money inflow and the weakening US dollar,
placed CBA in the price growth – exchange rate dilemma. However, the
bank remained true to its main objective and gave top priority to
maintaining low rates of price growth. T. Sargsian noted the matter
concerns 400 goods included in the consumer basket. Prices of real
estate, apartments, cars, various services, which have shown high
growth rates in recent years but not affected the behavior of consumer
prices, have not been included in the consumer basket. “This means
that giving preference to stable prices, we make the behavior of the
budget or expenses of the average Armenian family predictable for it,”
CBA Chairman said. The discussion on the CBA annual account will
continue at the May 26 meeting. In accordance with the NA Bylaws, the
account will be taken into consideration but no decision will be made
on it.