Twelve-month inflation in 2017 to be 1.3 percent

20.11.2017 17:17
Twelve-month inflation in 2017 to be 1.3 percent

YEREVAN, November 20. /ARKA/. The 12-month inflation in Armenia by the end of 2017 will be 1.3%, according to the quarterly macroeconomic review, prepared by the Eurasian Development Bank (EDB). According to the review, by the end of 2017, temporary factors that used to put downward pressure on consumer prices in the summer months are expected to stop.

"Strong consumer demand, an increase in real wages, as well as further stabilization of inflation expectations of economic agents will allow inflation to increase slightly to 1.3% at the end of 2017, with subsequent consolidation at the target level in 2018-2020," the EDB notes.

It says after the acceleration of the annual inflation in the second quarter of 2017, consumer prices growth rate in July-August 2017 slowed. In August the inflation was 0.9% as opposed to August 2016. In June 2017 it was 1.1% against June 2016. The main factor of this dynamics in the summer months was a slowdown in the growth of prices for agricultural products.

Core inflation, cleared of price changes for seasonally volatile goods and regulated services, accelerated in July-August 2017. It was 1.5% in August 2017 against August 2016, which was facilitated by the reduction in disinflationary impact of domestic demand.

The steady growth in core inflation since the beginning of this year indicates a positive recovery trend in inflationary processes, which will contribute to the gradual rise of inflation to the lower boundary of the target corridor in 2018, EDB says.

The government-projected inflation for this year 4% (± 1.5%). -0-

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