FINANCE MINISTER: NO MAJOR INFLATION RISKS EXPECTED IN ARMENIA THIS YEAR

ARKA
Oct 28, 2009

YEREVAN, October 28. /ARKA/. Armenia will face no major inflation
risks this year, Finance Minister Tigran Davtyan said Wednesday
answering ARKA News Agency’s question.

"The nine months’ inflation is quite low and doesn’t get out of the
limits set by the state budget."

According to statistical reports, 2.8% inflation was recorded in
Armenia in Jan-Aug 2009, compared with the same period a year earlier,
and 0.4% deflation was recorded in August, compared with the previous
month.

Davtyan said that domestic products showed deflation, and inflation ,
he thinks, are brought to the country from the outside.

The minister said that the government planned quite low inflation in
the 2010 state budget – from three to four percent.

The deflator index is planned to be 2% in 2010.

"Major inflation risks are unlikely this year, but recovery of the
global economy and economic growth pace may increase inflation risks
in coming years."

If so, the government will make some corrections in its policy,
and replace the current expansionary policy with deterrent.

The government has planned 4% (±1.5%) inflation in the 2009 state
budget.

From: Emil Lazarian | Ararat NewsPress