YEREVAN, May 26. /ARKA/. The Central Bank of Armenia projected the 12-month inflation to be within 2.5-5.5% during the year 2014, says the Central Bank’s report on inflation based on monetary-credit policy for Q2 and the performance report for Q1.
Amid weak economic activity the inflation levels will continue dropping more rapidly than expected, says the report. The third quarter inflation will stabilize at the lower limits mainly due to neutralized energy price rise effects of July 2013, according to the report.
The Central Bank will continue loosening the monetary-credit conditions in the second quarter inline with macroeconomic expectations, which will, along with expansionary fiscal policy, lead to increased gross demand and restored inflation levels.
Consequently, economic activity is expected to grow in near future facilitating the targeted inflation levels in mid term, according to the report.
According to the Central Bank, the twelve-month inflation was 3.8% in Armenia in the first quarter.
Inflation levels of 4% (±1.5%) and a 5.2% GDP growth are projected under the state budget for 2014. –0—
