ARMENIA POSTS 0.3% DEFLATION IN SEPT

Interfax, Russia
Oct 2 2006

YEREVAN. Oct 2 (Interfax) – Armenia had deflation of 0.3% in September,
the National Statistics Service told Interfax.

Consumer prices rose 2.3% in January-September.

Prices for food, including alcohol and tobacco, fell 0.9% in September
compared with August. Nonfoods went up 0.2% while service charges
fell 0.5%.

Average monthly price growth was 0.3% in January-September 2006,
compared with a reduction of 0.4% in the same period of last year.

The state budget targets 3% inflation for the full year in 2006.

Prices fell 0.2% in 2005.