Chairman of the RA National Assembly standing committee on finance, credit and budgetary affairs Gagik Minasyan said that high inflation rate has become a heavy blow to Armenia’s population, as the country’s economy was always characterized as an economy with low inflation rate on the post-Soviet territory.
He added that all efforts should be exerted in 2010 to record targeted inflation rate – 4±1,5%.
“An unprecedented high inflation rate (9.4%) and decline in agriculture (14.5%) became the two basic negative phenomena in Armenia’s economy in 2010. Due to unfavorable climatic conditions, decline was recorded in agriculture, as a result of which prices for foodstuff went up,” said Minasyan.
The expert noted that the high inflation rate in Armenia was also conditioned by growth in prices at international markets, specifically, those for grain. “Within several years we will be able to supply 55% of our grain demand, due to which Armenia will become less dependent on global prices fluctuations,” concluded Minasyan.
