PREMIER: ARMENIA’S INFLATION LOWEST IN CIS

ARKA
Oct 16, 2008

YEREVAN, October 16. /ARKA/. Armenia recorded the lowest inflation
rate in Commonwealth of Independent States, despite the rate was higher
than planned, Armenian Prime Minister Tigran Sargsyan said on Thursday.

He said that no price decrease is expected in the fourth quarter,
since this is a season process.

"This season nature is due to the circumstance that trading is mostly
being carried out in this very period, and we have never managed to
overcome this tendency", he said.

Inflation rate in Armenia is planned at 4 (±1.5%) percent in the
2008 state budget.

In September, compared with December of 2007, 1.2% inflation was
recorded.

According to Armenian Central Bank’s latest forecast, 12-month
inflation in Armenia will be at 5.8% in the 4th Q 2008 and 3.5%
in the 3rd Q 2009.

In its forecast and monetary and credit policy for the 4th Q 2008,
the Central Bank says that bakery products are likely to go 20%
down, if things run as expected. This will lower inflation rate by
3 percentage points.

Besides, the Central Bank has taken into account gradually weakening
secondary impact from the outside on food inflation.

–Boundary_(ID_0gjeUQQ/vd5j50rvhfl5vg) —