3.7% inflation recorded in Armenia in 4th Q 2009

YEREVAN, February 8. /ARKA/. The Central Bank of Armenia says 3.7% inflation was recorded in Armenia in the fourth quarter 2009.

In its monetary policy program for 2010, the central bank said that its 2009 monetary policy has been focused on combination of spurring economy and ensuring price stability.

This policy produced results already in the fourth quarter – economic decline slowed down.

Despite the ongoing rise in world prices for raw materials and foods, inflation pressures intensified in Armenia, but the inflation has not exceeded the set benchmarks.

Inflation pace speedup was seen in December, but unlike the previous quarter’s inflation impacted by increase in prices for non-foods and services, this inflation was due to a season rise in prices for agriculture industry’s products.
 
The central bank says that 3.7% inflation recorded in the fourth quarter 2009 was mainly due to 5.8% rise in prices for foods, cigarettes and spirits that drove inflation 3.1 percentage points up.

Fruit prices rose 35.9% adding 0.9 percentage points to inflation, and prices for vegetables went 44.2% up adding 2.1 points to it.

Remarkable is that increase in prices for tomatoes, cucumbers, pepper vegetables and potatoes and eggplants pushed inflation 4.2 points up.

Prices for nonfoods and services climbed 3.0% and 0.7% lifting inflation by 0.7 points.

Hence, the 12-month inflation leapt 2.8 points in the fourth quarter, compared with the third quarter, to 6.5% (one point higher than planned).

The quarterly inflation pressure affected also natural inflation – 1.7% in the 4th Q. As a result, 12-month inflation rose 1.5 percentage points in the 4th Q, compared with the 3rd Q, and reached 5.2% by late December. -0---