The Central Bank of Armenia: by the end of the year the inflation rate in the country will be 3.5 percent
According to the Central Bank of Armenia (CBA), by the end of 2009 the inflation rate in the country will be 3.5 percent, and by the end of II quarter of 2010 – 2.7 percent.
Throughout the whole 12-month period of the forecast the inflation rate will stay within the certain corridor – 4 +/- 1.5 percent.
The decline in the real private spending in 2009 is expected at the level of 15-16 percent. We expect also the decline in private investments in the spending structure almost by 35–38 percent. Thus, the decline in the real private consumption expenditure will be within 4–6 percent. As a result, in the second half of the year, the private spending will be below its potential level by 8–9 percent, and it will lead to inflationary pressure on the consumer market by 2.4–2.7 percent.