PRICE RISE ARMENIAN GOVERNMENT’S FOCUS
ARKA
June 12

Government focuses on the price rise issue, according to RA Prime
Minister Tigran Sargsyan.

"Nowadays it is a major concern of our community," the Premier said
yesterday at a parliament meeting. "If we want to reduce poverty in
Armenia, we should realize that consumer price rise is a grave threat
for the government program."

Sargsyan has charged ministers to put forth proposals to curb price
rise.

Price fluctuations in global market show that the world has not fully
overcome inflationary pressure, according to the Prime Minister.

He pointed out the four-fold rise in fuel prices for the past four
years.

Sargsyan believes abrupt fluctuations may cause sharp fall in prices.

According to the Prime Minister, wheat and rice prices fell sharply
last month. An integrated approach to price fluctuations is necessary,
Sargsyan said.

The Government undertakes measures to solve the problem. The only
way to curb inflation is to improve the tax and budgetary policy by
collected more taxes and reducing expenditures, so that the budget
could not have an extensive influence on prices, according to the
Premier.

Another important step is to make the Central Bank raise interest
rates to curb inflation in Armenia. The Prime Minister called on the
government to promote free competition. "The State Commission for
the Protection of Economic Competition can assist us by studying the
markets that lack price flexibility," Sargsyan said.

The commission is to inform the Tax Service market study results
to help it reveal attempts to make excess profits, according to
the Premier.

He said the Government plans to implement an agricultural program
the purpose of which is to protect farm workers from sub-purchasers.

"If we want to improve tax and customs administrations, we should
refrain from subjective comments and try to be objective while
implementing mechanisms," Sargsyan said.

He expected to receive support from MPs in achieving this
goal. Sargsyan believes current tax reforms will improve the situation
and build up public confidence in government programs. -0–