REDUCTION OF PRICES «IS A DANGEROUS PHENOMENON»
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«If 1000 square meters of gas costs 110 USD, the prices in Armenia will rise at least by 15-20%», economist Edward Aghajanov predicts. According to him, this comes from the «strangeness» of the Armenian market, where the prices of some goods form those for others, “Petrol, diesel fuel, gas, electric power and corn are subject to this in the first place”.
The economist mentions that the raise of the prices will be so obvious that the officials will not be able to hide it. According to the information from the RA Statistic Service, last year the prices were reduced by 0.2%.
“The reduction of prices is a very dangerous phenomenon for the economy of every country. There is nothing to be proud of as it is called deflation which does not stimulate production. When prices are reduced, the producers do not produce many goods. In contrast to this, moderate inflation contributes to the development of the economy. If prices are raised, more goods are produced, creating the part of the goods which fights the inflation”, the economist told “A1+”.
