Yerevan/Mediamax/. Board of the Central Bank (CB) of Armenia made a decision at its session on September 7 to leave the refinancing rate unchanged at the level of 7.25%.

Mediamax was informed in the press service of CB that there was inflation registered at the volume of 1.3% in August, 2010, as compared to June, as a result of which the index of 12 months’ inflation made 9.6%, having increased by 1.8 percentage points, as compared to the analogous index of last month.

CB Board established that acceleration of 12 months’ inflation is mainly conditioned by increase of prices for wheat products, vegetables and fruits, and this, in its turn, is conditioned by developments in international markets of foodstuffs and the situation in the agricultural sector in Armenia.

“Despite the fact that the inflation index significantly exceeds the ceiling of the target level, nevertheless, this is a result of “the offer shocks”, the continuous nature of which is unlikely. It is expected that in the coming months, the 12 months’ inflation will gradually decrease and reach the upper limit of the target margin”, CB Board notes.

At that, the Board believes that gradual reestablishment of domestic demand does not yet create inflationary pressures, and the toughening of the monetary-credit conditions from the beginning of the year and the current development of the currency market continue contributing to mitigation of the inflation atmosphere.

Taking into account the fact that inflation increase is conditioned exclusively by factors of offer, as well as the uncertainly in international market of foodstuffs, the Board decided to refrain from toughening the monetary-credit conditions.