YEREVAN, December 18. /ARKA/. Armenia’s Central Bank is working on improving the inflation neasurmeent model , Central Bank governor Martin Galstyan said today. He recalled that the one used now was introduced in back in 2006.
“We are working to have a more perfect model. We are actually the first in the world who want to change this framework, to modernize it. We are very happy that we have reached the point where the Bank of Canada, which is also thinking about replacing the framework, is taking our work as a pattern,” he said during a discussions at Yerevan State Univeristy marking the 30th anniversary of the intrduction of the Armenian national currency.
Since price dynamics exhibits significant volatility, caused, in particular, by the impact of seasonality of production and consumption of some goods and services, changes in prices regulated by the state, the Central Bank, using international experience, has developed a methodology for calculating core inflation to regulate long-term changes in the price level.
Core inflation calculated by this method reflects the impact of the policy implemented by the Central Bank on the price level. The core inflation rate is published in periodic official publications of the Central Bank. -0-
