No illogical and noncompetitive inflation to be seen in Armenia

07.04.2020 10:01
No illogical and noncompetitive inflation to be seen in Armenia

YEREVAN, April 7. /ARKA/. Armenian Prime Minister Nikol Pashinyan, answering Monday citizens’ questions in a live broadcast, said that there would be no illogical and non-competitive inflation in the country.

He said this answering a question from a citizen of Vanadzor, who reported that in the city there has been a rise in prices for many goods, including bread.

"I want to remind that in Armenia there was a low inflationary background in the pre-crisis period, and in February we also had a deflation of 0.2%," he said.

Pashinyan said he has analyzed the situation in large retail chains and, according to the data he has, there was no increase in the price of bread there. He emphasized that prices for some products have risen in slightly and that steps are being taken by the government to prevent price hikes.

In this regard, the premier explained that part of the price increase may be caused by currency fluctuations, and the government is conducting anti-crisis measures to manage this risk. So, as part of one of the measure, preferential loans are being given to importers.

One of the anti-crisis measures of the government implies an opportunity for Armenian business people to apply for government support in the amount of up to 500 million drams (about $ 1 million). All legal entities and individuals, private entrepreneurs who have been operating in the country for the past 12 months without limiting their areas of activity and with the only condition - they should have a favorable credit and tax history – are eligible to enjoy this tool and take advantage of this assistance.

"By using this tool, which has already begun to operate, we must support, help and, where it is necessary to control, so that there are no uncontrolled and illogical price increases," Pashinyan said.

He also said he had reached an agreement with the heads of the Eurasian Economic Union member countries that for a number of goods the preferences for customs duties would be extended until the end of 2020, it was agreed that preferences for 647 goods would be extended for Armenia.

"We are convinced that these actions will mitigate inflation to some extent, and we, of course, will do our best to prevent unjustified inflation," he said.

According to the report of the National Statistical Committee of Armenia, prices in Armenia’s consumer market in March 2020, compared with March 2019 (12-month inflation), decreased by 0.1%. In March, compared with February, inflation was recorded at 0.5%.

In the government budget for 2020, economic growth is projected at 4.9% and inflation at 4% (± 1.5%). -0-


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