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.

---