IMF: INFLATION IN ARMENIA IS 9.5% IN NOVEMBER 2010 WITH TENDENCY OF REDUCTION

/ARKA/
December 3, 2010
YEREVAN

Inflation in Armenia is 9.5% in November 2010 compared with November
2009, said permanent representative of IMF in Armenia Guillermo Tolosa.

"We think that inflation will reduce in the result of optimal policy
conducted by the Central Bank", said Tolosa in his report on the
developments of regional and global economies.

In January-October 2010 Armenia registered inflation of 7.9% compared
with the same period of 2009. According to the state budget, inflation
in 2010 is planned on the level of 4% (1.5%) in Armenia.

Level of inflation is conditioned by the fact that the share of food
products in consumer base of Armenia is rather high and increase of
their prices in the world markets seriously impact on the inflation.

"If CB Armenia would like to solve inflation problem, it has very
few instruments for its implementation There is no need to change
the percent rates. It will take place in natural way ", said Tolosa.

By the results of 2010 inflation in Armenia will be 6%. EBRD experts
consider that inflation indicator will be in the margins envisaged
by CB Armenia in 2010. World Bank thinks that at the end of 2010
inflation will be from 5.5% to 6.5%.

Opinions of the experts in the issue of inflation forecast in Armenia
significantly differ and vary between the planned level of 5.5%
to 10%. G.K.




From: A. Papazian