Inflation in Armenia reflects delayed impact of dram’s devaluation and natural gas price rise: WB
Inflation in Armenia reflects delayed impact of dram’s devaluation and natural gas price rise: WBARKA, 26.02.2010
Inflation in Armenia reflects the delayed impact of several factors, such as devaluation of the Dram in 2009 March, as well as the natural gas price rise, World Bank Yerevan Office head, Aristomene Varoudakis said today.
Speaking at a news conference he said inflation at the end of 2009 exceeded Central Bank’s expectations reaching 6.5%, rising further to 7% in January 2010.
Consumer prices in 2009 December grew year-on-year by 6.5%. In 2010 January a 1.7% inflation was registered. In terms of 12 months it was 7%.
According to Varoudakis, Armenian inflation was affected also by some other factors, particularly, by the rise of prices of sugar, wheat and medications.
Aristomene Varoudakis also said Armenian banking system has high liquidity level both in hard currency and Drams, but he added that it is not used fully for allocation of loans. The 2010 government budget projects a 4 ±1.5% inflation for 2010. The IMF projects a 6% inflation.
