PRESIDENT OF CENTRAL BANK ASKS NOT TO WORRY
Lragir/am
23 March 06
It is extremely important to evaluate duly the consequences of the
growing price of gas and to avoid fuss, which gives more trouble to
the Central Bank in sustaining prices in 2006, stated the president of
the Central Bank of Armenia Tigran Sargsyan. According to him, the
peculiarity of estimated inflation is the expected growth of the price
of gas. With regard to this it is extremely important to focus
attention on the environment in Armenia, `that may spur inflation,
sometimes artificially.’
The president of the Central Bank says although the new price has not
been applied yet, already there are expectations and `businesses are
naturally working out their price policy for 2006 and 2007 according
to these estimates, and are already forecasting soaring prices that
will bring about inflation.’ The Central Bank estimated the possible
inflation awaiting the consumer basket under different tariffs. `We
think the concerns are bigger than our estimates. The role of the
National Assembly and the members of parliament is also big, it is
important what they signal to people, what expectations they
instill. By our estimates if the tariffs set by the commission are
applied, by the end of the year the rate of inflation in the consumer
basket will go up by 1 per cent,’ assures Tigran Sargsyan. This
monitoring included the impact of these changes on the prices of
bread, fish, sugar, and other products of the consumer basket.
The president of the Central Bank points out the measures taken by the
government to prevent the fuss. `The co-chair of the Commission for
Russian-Armenian Economic Cooperation stated that the negotiations are
successful, which means that the government will have additional
opportunities to manage all the negative consequences of the increased
price of gas. It will be directed at pushing down the inflation,’
hopes Tigran Sargsyan.
From: Emil Lazarian | Ararat NewsPress
