Jean-Michel Happi, the World Bank Country Manager for Armenia, forecast a dramatic drop in medium price index, with 4-5% inflation rate.

“9,4% inflation registered in 2010 was caused by food products’ price upsurge, as well as high tariffs for transport, grain crop and raw materials,” he told a news conference in Yerevan.

The expert also cited poor climatic conditions, decrease in production volume and drought-induced wheat export from Russia behind the increase of prices in Armenia.