Bagrat Asatryan predict high inflation rates in Armenia in 2011

PanARMENIAN.Net - Former chairman of the Central Bank of Armenia (CBA) Bagrat Asatryan said that an unprecedented inflation rate (9.5%) was recorded in Armenia in 2010.

“The inflation is basically reasoned by the Armenian authorities’ inability to pursue an economic policy. Of course, external factors have also affected the index, but their influence is limited. Increase in prices at global markets should have affected inflation rates in other countries as well. Europe did not face similar inflation rates,” Asatryan told a press conference on January 20.

According to the expert, one should not expect the inflation paces to be lower in 2011, the more so as tariffs for gas will be increased soon. “In contrast to other countries, nothing is done in Armenia to suppress inflation, due to which growth in prices has a double effect in the country,” said Asatryan.

Chairman of the RA NA Committee on Social Affairs Hakob Hakobyan said for his part that the high inflation rate is basically conditioned by the fact that Armenia lacks industrial potential, which would allow being independent of global prices.

“The CBA instruments are insufficient to regulate inflation,” said Hakobyan.