Thursday, March 11 2010 18:41
Support of economic growth and low inflation will not be mutually hindering: Central Bank of Armenia
ArmInfo. In late Apr and May inflation in Armenia may reach 7-8%, Head of the Monetary-Credit Policy Department of the Central Bank of Armenia Artur Stepanyan said during a seminar today.
This figure includes the Apr 1 rise in the gas price, which is expected to have a 0.9%-1% influence on inflation, i.e. half of what the CB forecasted last year in the face of scheduled rise in electricity and gas tariffs.
The CB's monetary-credit policy is aimed at bringing inflation to the target level. Nobody has a magic wand to be able to influence the current prices but even if at the end of this year target inflation turns out to be different in Q1 2011 it will reach the planned level.
According to the CB's monetary-credit policy, in 2010 inflation will be 7.4%. However, if the CB interferes inflation may drop to 6%-7%.
Changes in the global economy may bring this level down but this is not what the CB will try to get at any price.
After the crisis of 2009 the Armenian economy is recovering and it would be wrong on the CB's part to take drastic steps to ensure planned inflation as this may curb economic growth. Last year the CB was reasonable and will act the same way this year too. If the CB continues its well-balanced efforts to curb inflation and to foster economic growth it will be able to stabilize the economy as stable prices are a guarantee of stable economic growth.
To remind, Apr 1 the natural gas tariff will be raised by 37.5% to 132,000 AMD per 1,000 c m for the population and 13% to $243.13 per 1,000 c m for the industry.
In Feb 2010 inflation in Armenia was 0.3%, in Jan-Feb 2010 - 2%. In 2009 it was 6.5%. In Jan 2010 as compared with Jan 2009 GDP grew by 2.4%, as compared with Dec 2009 it decreased by 60.5% to 149.5bln AMD or $396mln in market prices.
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