LAW ON INFLATION INADVISABLE IN ARMENIA

news.am
March 17 2010
Armenia

A law on wage, pension and allowance adjustment for inflation would
entail inflation risks in the country, which might cause a collapse
of the state’s macroeconomic system, RA Prime Minister Tigran Sargsyan
stated in Parliament on March 17, commenting on a legislation initiated
by the independent MP Victor Dallakyan.

According to him, legislations like that are adopted in the countries
with inflation exceeding 10%. "But in countries like Armenia,
with stable inflation, such a law would be inadvisable," Sargsyan
said. He stressed that the Government is now trying to curb a price
rise. "It would be more advisable to curb inflation than adjust the
population’s incomes for inflation, and the Government is doing it
now," the Premier said.

An inflation rate of 0.3% was registered in Armenia’s consumer market
this February, and 2% this January-February. An annual inflation rate
of 6.5% was registered in the country last year. The Central Bank of
Armenia forecast an annual inflation rate of 7-8 per cent for late
April- early May.