0.4% Deflation Recorded In Armenia In August Against July

0.4% DEFLATION RECORDED IN ARMENIA IN AUGUST AGAINST JULY

ARKA
Aug 31, 2009

YEREVAN, August 31. /ARKA/. 0.4% deflation was recorded in Armenia
in August against July.

Prices for foodstuffs (including alcoholic drinks and tobacco products)
fall 1.3% in the country in August against July, the RA National
Statistical Service reported.

In August against July prices for nonfoods and services grew by 0.3%
and 0.8% respectively.

At the same time, consumer price index was 102% in August as compared
with December 2008.

In August against December 2008 prices for foodstuffs (including
alcoholic drinks and tobacco products) went 3.6% down; prices for
nonfoods and services rose by 9.9% and 8.2% respectively.

Monthly average increase in consumer prices was 0.2% in January-August,
a reduction of 0.3pct as compared to the level of last year (0.5%).

In August this year against August last year, consumer price index was
103.5%: index for foodstuff prices was 99.1%, for nonfoods prices –
104.6% and for service prices 110.5%.

In January-August against the same period of last year the indices
were 102.8%, 99.2%, 102.1% and 110.1% respectively.

The Statistical Service reports that in August against the year 2005
the consumer price index was 120.5%: 15.7% rise was recorded in prices
for foodstuffs (including alcoholic drinks and tobacco products),
15.7% rise was recorded in prices for nonfoods, and service prices
rose by 31.7%.

Acc ording to the statistical information, consumer prices dropped
1.0-0.2% in all cities under study in August against July; the highest
deflation was recorded in Vagharshapat and Talin. Consumer prices
reduced 0.2% in the capital.

Under the state budget, inflation was planned to be within 4% (±1.5%)
by the end of this year.