16:00, 15 January 2011

Armenia was in the top ten in 2010 by highest price growth

Armenia found itself among the ten countries, where last year the highest growth in foodstuff prices was registered. These are the findings of the UN's Food and Agriculture Organization (FAO).

As reported by Jean-Michel Khapi, director of the Armenian branch of World Bank, this year the World Bank forecasts for Armenia a slowdown in price growth down to 4-5 percent as compared with 9.4 percent in 2010.

Touching on the reasons of the price growth in Armenia, Jean-Michel Khapi said: "The Armenian economy is rather open; therefore, growth of prices in international markets quickly affects the domestic market." According to his story, bad weather conditions in 2010 also contributed to the growth of food prices.

Arthur Dzhavadyan, Chairman of the Central Bank of Armenia, said in his comment on the price growth that the main factors had been the price growth in international markets, the trend towards the dram devaluation, as well as the monetary and fiscal policies implemented last year.

Author: Lylyt Ovanisyan

Source: CK correspondent