High rate of inflation (over 8% in January-November) reported in 2010 is a significant challenge to Armenian authorities, according to the chairman of the standing parliamentary committee for financial, credit and budgetary affairs Gagik Minasyan.

As he told a December 28 news conference in Yerevan, the situation is explained by unfavorable weather conditions leading to a slump in agriculture.

“Besides, the increase of world prices for grain crops could not but influence Armenia, with bakery products occupying a significant share in Armenian citizens’ basket of goods. Armenian government is taking action to reduce the country’s dependence on grain cultures. A concept of seed farming development was worked out, allowing to provide for needs of the internal market,” Minasyan stated.