CENTRAL BANK OF ARMENIA: INFLATION IN ARMENIA TO MAKE UP 3.5% IN 2009

ArmInfo
2009-07-30 15:39:00

ArmInfo. The Central Bank of Armenia (CBA) forecasts 3.5% inflation in
the country by the end of 2009, and 2.7% inflation – by the end of II
qt 2010, the program of the CBA monetary policy for III qt 2009 says.

As a consequence of the global economic crisis, maintenance of big
negative severance in domestic demand will remain in the forecasted
12-month period the main factor conditioning the inflation tendency. At
the same time, restoration of economic growth rates may become possible
as a result of anti-crisis measures of the government and reduction
in interest rates.

As the results of the CBA model of quarterly forecasting, under
these conditions the current inflationary pressure will gradually
dampen and throughout the whole 12-month forecasted period inflation
will be maintained in the target corridor 4+1,5%. At the same time,
according to the CBA forecasts, there may be risks connected with
both reduction of inflation and its growth connected with the rates of
increasing liquidity by means of anti-crisis programs, terms of global
economy recovery, as well as with the processes of implementation of
large-scale regional transport and energy programs.

To note, in Jan-Dec 2008 5.2% inflation was fixed in the consumer
market of Armenia. Inflation was fixed at 5.2% in Jan-June 2009
as well.