DEFLATION 2.7% IN ARMENIA IN JULY AGAINST JUNE

ARKA
Aug 3, 2009

YEREVAN, August 3. /ARKA/. A 2.7% deflation was recorded in Armenia
by June 2009.

Armenia's National Statistical Service reported that deflation was 2.7%
in July against June.

Foodstuff (including alcoholic drinks and tobacco products) prices
fell by 5.2% in July against June; nonfoods and service prices went
up by 0.5% and 0.1% respectively.

Consumer price index was 102.4% in July against December 2008.

In January-July, prices for foodstuffs (including alcoholic drinks
and tobacco products) went 2.3% down; nonfoods and service prices
reduced 9.6% and 7.4% respectively.

Monthly average rise in consumer prices was 0.3% in January-July - a
reduction of 0.3% as compared with the same period of last year (0.6%).

Consumer price index was 103.1% in July this year against July 2008:
index of prices was 99% for foodstuffs (including alcoholic drinks and
tobacco products), 104.6% for nonfoods and 109.7% for services. In
January-July against the same period of last year, these indicators
were 102.7%, 99.2%, 101.8% and 110% respectively.

According to the Statistical Service, consumer price index was 120.9%
in July against 2005: price rise was 17.2% for foodstuffs (including
alcoholic drinks and tobacco products), 15.3% for nonfoods and 30.7%
for services.

The statistics show that consumer prices fell by 3.9-2.0% in all
cities under review in July against June with20the highest inflation
level recorded in the city of Vanadzor. Consumer prices fell by 2.4%
in the capital.

According to the state budget, inflation is expected to be at 4%
(±1.5%) in Armenia by the end of 2009.