ARMENIAN CENTRAL BANK FORECASTS INFLATION AT 5.4% IN 2009

Interfax
Nov 5 2009
Russia

Armenia’s Central Bank forecasts that inflation will total 5.4%
in 2009, according to figures contained in the bank’s fiscal policy
program for the fourth quarter of 2009.

The report points to risks that inflation could be higher or lower
than forecast, stemming from the pace of economic recovery and from
current low domestic prices due to declining prices for food and
commodities brought on by the global financial crisis.

On that basis, the Central Bank plans to hold the refinancing rate
steady at 5% annually, which will facilitate the fastest possible
economic recovery without upsetting price stability.

Armenia had 3.2% inflation in January-October, including 0.5% in
October, according to the report.

The Finance Ministry forecasts inflation this year at 3%-4% and the
World Bank – 6%. Armenia’s budget assumes inflation at 4% plus or
minus 1.5%.

Armenia had 5.2% inflation in 2008.