Forecast: Armenia’s inflation to stand at 7% this year

YEREVAN, July 8. /ARKA/. Armenia’s inflation is believed to stand at 7% this year, Ameriabank’s development director, Tigran Jrbashyan said on Friday.

“We project a single-digit inflation rate,” he said. “According to our forecast, inflation won’t come close to 10%, but won’t subside below 5%.”

He said that inflation in Armenia was mainly driven up by increase in world prices for oil products and foods, but signs of stabilization are being seen now. Therefore, imports pose no threat now.

Jrbashyan pointed out 30-percent growth in money transfers to Armenia in the first half of this year. This growth lessens pressure on the forex market.

“The central bank has already mitigated its monetary policy and sees no necessity to take crucial steps,” he said. “That is why the regulator was keeping the benchmark refinancing rate unchanged throughout the recent two months.”

According to official statistical reports, year-on-year inflation in Armenia reached 8.5% in June 2011. This inflation was mainly triggered by increase in food prices.

In the 2011 government budget, inflation is projected at 4% (±1.5%). -0-

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