CBA CONTINUES TO RAISE REFINANCING INTEREST RATES UNDER
CONDITIONS OF GROWTH IN FOOD PRICES
10-09-2008 14:00:00 | Armenia | Economy
YEREVAN, SEPTEMBER 10, NOYAN TAPAN. Inflation made 6.6% in
Armenia in late 2007, while the average inflation made 4.4%,
exceeding by about one percentage point the permissible level of
the envisaged annual fluctuation, the Chairman of the Central
Bank of Armenia (CBA) Arthur Javadian stated at the RA National
Assembly on September 9. According to him, the reason was the
impact of a considerable rise in food prices in international
market. In particular, the growth in prices of bread products,
as well as butter and vegetable oil made 24% and 29.2%
respectively, contributing to overall inflation by 3.6% and
1.2%. 9.7% inflation was recorded with respect to domestic food
prices in 2007 due to the developments in international market.
The prices of the two other components of the consumer basket -
nonfood commodities and services grew by 2.5% and 3.2%
respectively.
The inflation in international market affected the markets
of other countries as well: it made 19.5% in Azerbaijan, 12.1%
in Belarus, 11% in Georgia, 18.8% in Kazakhstan, 14.1% in
Latvia, and 9.6% in Estonia.
9.6% inflation was recorded in Armenia in the first quarter
of 2008 against the same quarter of 2007. The 12-month inflation
in the commodity groups of bread products and butter-vegetable
oil made 33.3% and 32.3% as of late March 2008, contributing by
5% and 1.5% to the overall inflation. The growth in food prices
in its turn affected the inflation concerning non-food
commodities and services.
A. Javadian said that in the first quarter of this year CBA
continued to tighten its monetary and credit policy by raising
the refinancing interest rates.