INFLATION IN ARMENIA REFLECTS DELAYED IMPACT OF DRAM’S DEVALUATION AND NATURAL GAS PRICE RISE: WB

ARKA
Feb 26, 2010

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.