YEREVAN, January 8. /ARKA/. Armenia has completed the year 2013 with inflation below 6%, which is an achievement bearing in mind the increased energy prices and their indirect influence, head of the Central Bank of Armenia Artur Javadyan said in summarizing the 2013 results.

According to ArmStat, Armenia’s inflation rate was 5.8% in 2013. Prices for foodstuffs (including alcoholic drinks and tobacco products) rose by 5.8%; prices for nonfoods and services hiked 4.6% and 6.4% respectively.

Low and stable inflation environment, high economic activity was recorded in the beginning of 2013, but changed energy prices have had substantial impact on macroeconomic policy, Javadyan said as quoted by the press office of the Central Bank.

Armenia’s Public Service Regulatory Commission set net prices for gas and energy as from July 7 2013. Consequently, the gas price rose by 18% and price for energy hiked by about 27%.

Javadyan said the Central Bank was flexible in responding the situation. The regulator raised the refinancing rate to mitigate the secondary impact and neutralize expectations, he said.

In August 2013 the Central Bank of Armenia raised the refinancing rate from 8% to 8.5%.

Afterwards, under soft inflationary environment and low economic activity conditions, the regulator has been consistently reducing the refinancing rate, Javadyan said.

The Central Bank brought the refinancing rate from 8.5% down to 8% in November and to 7.75% in December 2013.

Under the 2013 budget, the targeted inflation is 4% (±1.5%) and GDP growth 6.2%. The 2014 budget envisages the same inflation level and a 5.2% GDP growth.–0—