YEREVAN. – The increase in the prices of natural gas and electricity and the recent hailstorm will create an additional 2-2.5-percent inflation in Armenia.

Central Bank (CBA) Chairman Arthur Javadyan noted the aforesaid during Monday’s National Assembly discussions.

In his words, they opt for a tough monetary policy under these conditions, but it is still too early to say whether the refinancing interest rate will increase.  

As per Javadyan, the main challenge of the CPA is the maintenance of price stability; but if this conflicts with other challenges, they need to choose the main challenge.  

The CBA head added that they are not pursuing a policy of a strong Armenian national currency (dram), and they intervene in the exchange rates solely in the case of sharp fluctuations. 

To note, pursuant to Armenia’s Law on State Budget, the allowable level of inflation in the country is in the 4+-1.5-percent range. As of May 2013, the twelve-month inflation constituted 5.2 percent in Armenia.