Yerevan/Mediamax/. World Bank (WB) fully supports the measures of the Armenian government on combating inflation, Director of WB Yerevan Office Jean-Michel Happi said in Yerevan today.

Mediamax reports that Jean-Michel Happi expressed an opinion that the Central Bank (CB) of Armenia will manage to secure by the end of the year the target inflation index (4% +/- 1.5 percentage points).

Jean-Michel Happi noted that despite toughening of the monetary-credit policy, WB revised the forecast on economic growth in Armenia this year (4-5%). “We constantly work with the Armenian government aiming at balancing inflation combating measures – monetary policy and structural reforms”, WB representative stated.

He noted that control of prices, initiated by the Armenian government, if they increase in a 30-day period by 30% and more, can lead to positive results in a short-term prospect, “however influence of such measures of regulation on the spheres, where there is competition, may be negative in a long-term period”.

Jean-Michel Happi stressed the necessity of additional steps by the government on the one hand to increase efficiency of economy and on the other – to prevent any anti-competitive phenomena, which may lead to increase of prices. “It is necessary to thoroughly study the factors, which lead to increase of prices, and if it turns out that increase in prices is conditioned by unequal competition, they should work over its improvement”, Jean-Michel Happi stated.