ARMENIAN CB BOARD: INFLATION MAY DEVIATE FROM TARGET INDEX IN 2007, 2008
ARKA
Jul 11 2007
YEREVAN, July 11. /ARKA/. The Armenian CB Board thinks that the
inflation may deviate from the target index in 2007 and 2008.
The Central Bank of Armenia protocol on refinancing for July 2007
said that by the end of 2007 deviations from the target index by 4%
(±1,5%). In accordance with the Central Bank of Armenia forecasts,
in December 2007, the 12-months inflation may make 5% instead of
forecasted 3.5%.
At the same time, the CBA Board member think that 3% deviation (±1,5%)
is possible in 2008. In the second quarter of 2008 the inflation may
make 4.6% against forecasted 3.3%. The CBA Board believes that in
the coming 12 months the inflation risks will prevail.
The following developments that may lead to growth of inflation index
are more possible: higher growth of international prices for crops as
compared to the expectations, higher growth for world prices for oil,
slowdown of rural economy because of unfavorable weather conditions.
The CBA Board does not exclude further consideration of interest
rates maintaining present prospect trends of economy development.
0.3% deflation is recorded in Armenia in June 2007 (as compared to
May), as a result of which the annual inflation in June 2007 made 4.8%,
which is more by 0.8pct than forecasted. According to the state budget,
by the end of 2007 the inflation in Armenia is planned at the level
of 4% (±1,5%).
–Boundary_(ID_tWZ3r9lTrS+VW1 VKcZbTpA)–