Central Bank of Armenia predicts 4%-5.5% yearend inflation
11.11.2011,
21:20
The Central Bank of Armenia (CBA) expects the 12-month inflation this year to be 4%- 5.5%. It said in its money and credit policy paper for the fourth quarter of the outgoing year that the likelihood of this projection is 92.2%.
YEREVAN, November11. /ARKA /. The Central Bank of Armenia (CBA) expects the 12-month inflation this year to be 4%- 5.5%. It said in its money and credit policy paper for the fourth quarter of the outgoing year that the likelihood of this projection is 92.2%. It also said the inflation at the end of the third quarter of 2012 will drop to 3%-3.5%. The likelihood of this projection is 61%.
According to the paper, the Central Bank of Armenia has revised its inflation forecast upwards due to slowing downward trend in prices of foods and commodities at international markets, weak inflationary pressures coming from the labor market, as well as the expanding inflationary environment caused by the growth in private spending. It also says a package of tax changes, to be enforced next year, including measures to tighten tax administration, could create additional inflationary pressures.
Thus, the Central Bank believes that inflation will be within acceptable levels of fluctuations and in the near future it will not have to make changes in its monetary and credit policy and implementation of neutral policies is most appropriate. -0-
According to the paper, the Central Bank of Armenia has revised its inflation forecast upwards due to slowing downward trend in prices of foods and commodities at international markets, weak inflationary pressures coming from the labor market, as well as the expanding inflationary environment caused by the growth in private spending. It also says a package of tax changes, to be enforced next year, including measures to tighten tax administration, could create additional inflationary pressures.
Thus, the Central Bank believes that inflation will be within acceptable levels of fluctuations and in the near future it will not have to make changes in its monetary and credit policy and implementation of neutral policies is most appropriate. -0-
