YEREVAN, August 23. /ARKA/. Armenia recorded a 2.1% deflation in the second quarter of this year as compared to 0.2% deflation in Q2 2013, says the Central Bank report on inflation.

The twelve-month inflation continued dropping in the period and reached 1.8% in June, says the report.

Prices changes in the quarter were mainly due to 3.6% reduction in food prices or an influence of 1.9-percentage-point on total deflation. Price reduction in food group was recorded for potatoes (38.4%), with a contribution of 2.4 percentage points to total deflation.

In the reporting quarter, egg prices dropped by 16.7% with a contribution of 0.2 p.p. to deflation.

The natural 12-month inflation was 0.4% at the end of June, according to the report.

According to the Central Bank’s projections, the 12-month inflation will start growing gradually in short term and will be close to the target level by the end of the first quarter 2015.

Under the budget, the planned level of inflation is 4% and GDP is 5.2% for 2014. –0--