EXPERT: REAL INFLATION RATE WILL BE HIGHER IN 2011 IN ARMENIA COMPARED TO 2010

PanARMENIAN.Net
February 25, 2011 - 12:51 AMT 08:51 GMT

Expert in management Harutyun Mesropyan said that the Armenian
authorities do not manage to tackle inflation, the real rate of which
will be higher in 2011 compared to 2010.

Already in February 2010, the Armenian authorities and representatives
of international structures stated that the crisis is overcome,
while inflation will be within the envisaged under the 2010 state
budget rate of 41.5% by the end of 2010.

"But the inflation rate totaled 9.4% by the end of 2010," Mesropyan
said.

Mesropyan also criticized the governmental policy on making forecasts
for six months, as it fails even in making those for a week.

According to forecasts of the Central Bank of Armenia (CBA), 10%
inflation will be recorded in Armenia in the first half of 2011,
after which the inflation rate will start decreasing.

However, Mesropyan believes that only CBA will not manage to suppress
the growth in prices through its injections to the country's economy
and exchange currency. He added that other state bodies should also
join this process.

Referring to overcoming the crisis consequences, Mesropyan said that
prices for precious metals continue growing, specifically, the price
for 1 ounce of gold increased from USD 250 to USD 1,400 over the past
two years, what proves that the crisis has not gone.




From: A. Papazian