ARMENIA SHOULD CREATE RESERVE FUND OF FIRST-PRIORITY FOODSTUFF

ARKA News Agency
Oct 24 2007
Armenia

YEREVAN, October 23. /ARKA/. Armenia should create a reserve fund
of first-priority food, independent MP Viktor Dallakyan said at
Tuesday’s parliamentary session commenting increase in prices for
first-necessity products in the country.

"Armenia, like any normal country, must have reserve fund of flour,
sugar and other commodities. Many developed countries undertake
intervention in markets in the event of increase in prices and
stabilize prices", he said.

The lawmaker thinks prices in Armenia surged not only because of
developments in world markets.

He thinks that prices for first-priority products went up amid poverty
and social problems.

In his opinion, Armenian authorities must react properly to these
processes.

Dallakyan proposed to convene extraordinary session to discuss mounting
food prices.

In September 2007, 0.2% deflation was recorded in Armenia. Consumer
prices grew 0.7% in September, compared with the previous month.

Consumer prices index was recorded at 102.7% in September 2007,
compared with the same months of the previous year.

Food prices index, including alcohol and tobacco, made 103.8% in
September 2007, compared with the same month of 2006.

3.8% inflation was recorded in Jan-Sept 2007, compared with the same
period a year earlier, of which foodstuff prices index made 104.8%.