ARMENIA HAS 2.2% DEFLATION IN JULY; INFLATION AT 4.5% YEAR-TO-DATE

Interfax News Agency
July 31 2008
Russia

Armenia had 2.2% deflation in July and inflation of 4.5% since the
beginning of the year, the National Statistics Service reported.

In July, prices on food (including alcohol and tobacco) declined 4.4%
but prices on non-food goods were up 0.7%. The prices for paid services
rose 0.4%.

Prices were up an average of 0.6% each month compared with an average
monthly price rise of 0.1% in the first half last year.

The government forecasts inflation for the full year at 4% plus or
minus 1.5 percentage points. The IMF forecasts Armenian inflation in
2008 at 7%.

Armenia had 6.6% inflation in 2007.