Inflation hits 9.6% in November: Central Bank

20.12.2010 12:35
Inflation hits 9.6% in November: Central Bank

YEREVAN, December 20, /ARKA/. Armenia’s Central Bank said the inflation rate hit 9.6 percent in November.

"The 12-month inflation at the rate of 9.6 percent recorded in November is continuously reasoned by growth in prices for domestic agricultural products, as well as increase in prices for imported foodstuffs," the Central Bank of Armenia said in a press release after a December 7 meeting of its Council.

It said the inflation growth resulted also from the growth of prices of dairy products, animal and vegetable oil, butter and sugar. Economic growth continued to slow down in the third quarter, as the GDP grew 2.4 percent in October. Industrial output grew by 10% backed by growth in mining, food, chemical, metallurgical and jewelry industries and in building materials sector. Construction sector grew by 3.1%, while services slowed down to 4.9%. The decline in agricultural sector continued, albeit it slowed down a little, reaching 16.7%.

Regarding foreign trade indicators, export growth rate virtually did not change. In the first ten months it grew by 41.4% from a year before, while import growth rate continued to slow down to 16.7% year-on-year.

During a December 7 meeting Central Bank Council recorded that the average interest rate on bonds with a 12 month maturity period dropped by 0.87% to 9.02% and the average interest rate on REPO also fell but insignificantly, to 7.48%.

The press release says also that despite a gradual lowering of dollarization rate, the bulk of loans issued in November, was in US Dollars. It was possible due to funds attracted by local commercial banks from abroad and due to excessive funds in forex on correspondent accounts of the Central Bank. -0-

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