YEREVAN, April 8. / ARKA /. Armenia’s inflation rate in 2015 is likely to remain moderate, despite the devaluation of its currency in late 2014, and is very likely to remain within the target band projected by its Central Bank, the Eurasian Development Bank (EDB) said.
According to the National Statistical Service, Armenian dram depreciated by 14.1% in 2014 December compared with the same period of 2013. Armenia’s national currency began to lose its value in late October.
According to the Central Bank, the average market exchange rate of the USD on November 21 was 418.4 drams, up 1.7% from the beginning of the month. Today, the greenback is trading at 474.15 drams.
“The negative effect of the devaluation on the inflation against the backdrop of a prudent monetary policy will be offset by the effect of the recession in 2015, the decline in world prices of food and petroleum products (in addition to reduction in the price of the Russian gas), as well as by the effect of the devaluation of the ruble on products imported to Armenia from Russia,” the EDB says.
The EDB predicts 1.6% GDP growth for Armenia in 2015. According to the National Statistical Service, the 12-month inflation in February 2015 was 5.4%. The government’s projection of inflation this year is 4% (± 1.5%). The GDP is expected to grow by 4.1%. – 0-
