YEREVAN, November 25. / ARKA /. Armenia’s Central Bank said it expects the 12-month inflation in 2013 to drop to 6.5-7 %. According to a regulator’s performance report for the third quarter of 2013, in the third quarter the 12-month inflation rose to 8.2 %, largely due to the impact of primary and secondary increases of energy prices in July.
The Central Bank’s inflation forecast for the fourth quarter of 2013 is 5.5-7 %. The CB also expects the inflation in the first quarter of 2014 to remain within 5.5-7 %. It said this probability is 62.5 percent and the probability that it will drop to 2.5-5.5 % is 60.5 percent.
Earlier, Central Bank chairman Arthur Javadyan said that in 2014 the inflation would return to the targeted band of 4 % (± 1.5%).
“The current easing of monetary conditions is in line with the economic slowdown and mitigating inflationary environment while the future monetary policy line will be determined by the implementation of the fiscal policy, ” the report says. -0-
