YEREVAN. - The inflation, which is high in Russia and low in Armenia, will help retain the compatibility of Armenian goods.

Head of the Monetary Policy Department of the Central Bank of Armenia (CBA), Vahan Grigoryan, said the aforementioned at a press-conference on Friday, responding to the question of Armenian News – NEWS.am.

As mentioned in the CBA monetary policy, the sale of Armenian goods in Russia is hindered by the dramatic drop of the Russian ruble (while the drop of the Armenian dram is much weaker). But this is to some extent compensated by high inflation in Russia, while the inflation in Armenia was low, becoming negative in 2016. To put it otherwise, Russian goods get more expensive, while the Armenian ones don't.

In 2015, the inflation in Russia (December 2015 vs. December 2014) made up 12.9 percent, while in Armenia the figure amounted to minus 0.1 percent. During the first eight months in 2016, the prices in Russia grew by approximately 3.9 percent, the 12-month deflation in Armenia constituting 1.9 percent.

Nevertheless, in 2017 the Central Bank of Russia wants to bring inflation to 4 percent, while Armenia seeks to return it to the target range of 4 +/- 1,5 percent.

Asked whether this is not fraught with reduction of demand for Armenian goods (if the Russian goods get cheaper and the Armenian ones get more expensive), Grigoryan explained that the accrued difference (inflation in Russia grew since 2014) creates a significant buffer, which allows to maintain the long-term compatibility of Armenian goods.