Inflation in Armenia reflects delayed impact of dram’s devaluation and
natural gas price rise: WB

YEREVAN, February 26, /ARKA/. Inflation in Armenia reflects the
delayed impact of several factors, such as devaluation of the Dram in
2009 March, as well as the natural gas price rise, World Bank Yerevan
Office head, Aristomene Varoudakis said today.

Speaking at a news conference he said inflation at the end of 2009
exceeded Central Bank’s expectations reaching 6.5%, rising further to
7% in January 2010.

Consumer prices in 2009 December grew year-on-year by 6.5%. In 2010
January a 1.7% inflation was registered. In terms of 12 months it was
7%.

According to Varoudakis, Armenian inflation was affected also by some
other factors, particularly, by the rise of prices of sugar, wheat and
medications.

Aristomene Varoudakis also said Armenian banking system has high
liquidity level both in hard currency and Drams, but he added that it
is not used fully for allocation of loans. The 2010 government budget
projects a 4 ±1.5% inflation for 2010. The IMF projects a 6%
inflation. -0-