INFLATION MAKES 4.8% IN ARMENIA IN JANUARY-MARCH 2008

Noyan Tapan
April 1, 2008

YEREVAN, APRIL 1, NOYAN TAPAN. 4.8% inflation was registered in
Armenia's consumer market in January-March 2008, with inflation making
1.4% in March on February, which had a direct impact on the notable
rise in prices of some goods.

According to the RA National Statistical Service, food commodity prices
(including alcoholic drinks and cigarettes) grew by 1.8% in March
on February 2008. The overall price level remained unchanged in the
nonfood commodity market, while tariffs of services increased by 1.1%
in the indicated period.

Growth tendency of bread, flour, butter and vegetable oil prices
continued in the country. The indicated foodstuffs make up 13.91%
of the consumer basket and have an overall inflation of 7.8%. They
contributed by 1.08% to the overall growth of consumer prices in
March. Without the price changes of these foodstuffs, the consumer
price index would have made 100.3% instead of 101.4% registered in
the indicated period.

The consumer price index made 104.8% in March 2008 as compared with
December 2007, including the index of food commoities (including
alcoholic drinks and cigarettes) - 106.5%, of nonfood commodities -
101.1%, of service tariffs - 103.7%. The consumer price index made
109.6% in March 2008 on March 2007, including that of food commodities
(including alcoholic drinks and cigarettes) - 113.1%, of nonfood
commodities - 104.7%, of service tariffs - 105.7%. The same indices in
January-March 2008 on January-March 2007 made 107.9%, 110.7%, 104.5%
and 104.5% respectively.

The consumer price index in March 2008 as compared with 2005 made
117.7%, including the index of food commodities (including alcoholic
drinks and cigarettes) - 123.7%, of nonfood commodities - 106.1%,
of service tariffs - 113.3%.