YEREVAN, August 11. /ARKA/. Inflation rate is expected to continue rising in Armenia in the second half of 2017 in absence of inside and outside shocks, economists at the Eurasian Development Bank say in their quarterly macroeconomic report.

They say that the deflation influence of domestic demand will gradually be weakening as economic activity will be recovering, and this will allow inflation to come close to the lower board line of the projected brackets in 2017 and will remain on the projected level in the medium term.

The authors of the report say that the impact of the conservative fiscal policy that curbs price rise will remain in 2017, but in the medium term, likely positive impact of fiscal consolidation on confidence in the policy and inflow of investments into Armenia’s economy will lead to neutralization of the deflation effect.

Armenia has ended the year 2016 with 1.4% inflation. Deflation in the country has been recorded throughout seven months of 2016, and only in September process rose 0.1%.

According to statistical reports, inflation in Armenia was recorded at 0.5% in Jan-June 2017, compared with the same period a year before.

In June 2017, compared with June 2016, it stood at 1.1%.

In the government budget for 2017, inflation is projected at 4% (±1.5%) and GDP growth at 3.2%. M.V.-0----