Thursday, April 7 2011 12:22
Chairman of Union of Armenian Banks is for combining of short-term and long-term tools to crack down on inflation
ArmInfo. To crack down on inflation in Armenia, we have to use the short-term monetary tools as well as the long-term ones, like reforming of economy, which should result in the import substitution of the local production, chairman of the Union of Armenian Banks, chairman of ARARATBANK board, Ashot Osipyan, told journalists today.
He also added that deflation takes place during the crisis and inflation after it. This is peculiar to many countries including Armenia. At present, Armenian authorities have to think how to mellow inflation pressure.
There are three reasons of inflation. First is the monetary, when during the crisis the government stimulates liquidity and attracts many funds at the market. The second is the trade inflation, as after the crisis we have changing of prices for the essentials, prices start growing and we have the fight for reduction of the money stock. The first and the second reasons are taking place in Armenia at present. The third reason is inflation of demand. This reason is peculiar to such countries like China, India and Brasil.
According to Armenian National Statistics Service, the 1,8% inflation was fixed at the consumer market of Armenia in December 2010, and 9,4% inflation in January-December 2010. The 0,8% inflation was fixed in March 2011, and 5,2% in January-March (11,1% as against the same period of 2010).
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