YEREVAN, June 9. / ARKA /. The ongoing inflationary trends in Armenia show that the inflation is within the target band projected by the Central Bank, and it will continue to remain at the upper limit of the permissible fluctuation this year and then it will gradually stabilize around the target band, the Central Bank said in a commentary on inflation trends in May 2015.

According to the National Statistical Service, a 0.5% deflation was registered in late May when compared to the previous month as a result the 12-month inflation, as projected by the Central Bank for the second quarter of 2015, was at the upper limit of the permissible fluctuation, standing at 5.1% at the end of the month.

"Because of the increased supply and the slowing of the global economic growth, deflationary trends in the external sector of the Armenian economy continued, being reflected on the downward trend in prices of some imported food products like sugar, animal and vegetable oils," the regulator said.

At the same time, according to the Central Bank, positive developments in domestic agriculture continued, leading to lower prices for vegetables and potatoes. As a result, the prices of foods fell by 1.2% in one month, while non-food prices and services did not significantly change, reflecting the effect of neutralization of the devaluation of the exchange rate at the end of last year.

The government’s projection of economic growth for 2015 is 4.1%; inflation projection is 4%. M.V.-0-