4% inflation creates right basis for resource redistribution in economy, says Finance Minister

YEREVAN, JULY 6, ARMENPRESS. Finance Minister Vardan Aramyan agrees with the observations of the Central Bank of Armenia (CBA) according to which one of the reasons of deflation was the entry of raw material and food products of the world market to the Armenian economy, reports Armenpress.

“This year it is obvious that there is a need to recover since after deflationary environment if domestic demand increases and there are positive developments, these prices must come back”, the Minister told reporters after the Cabinet meeting.

He said in January-May 2017 there is already a 12-month 1.6% price environment. “For our economy it is not accidental that four targets have been selected since 4% inflation means that right grounds are created for redistribution of resources in the overall economy so that the economic growth will not suffer”, the Minister stated.

The Government has approved the CBA 2017 monetary policy program.