On March 23, Jean-Michel Happi, the World Bank Country Manager for Armenia, said that the Armenian government first needs to reveal the basic reasons behind the rise in prices, as it may be conditioned by a low level of competition.

Commenting on the Armenian government’s decision to set “price ceiling” for essential goods in case of 30% growth in their prices, Happi said in Yerevan: “Price management in Armenia may in a short term hamper rise in prices, but it may have a negative impact in a long-term outlook.”

Happi said that the WB conducted researches to reveal historical behavior of prices and found out that 30% monthly growth in prices is observed only for a limited number of goods. Specifically, prices for eggs, milk and bread are relatively higher in Armenia compared to neighboring countries, while price for sure is lower in Armenia.

At the same time, Happi did not exclude the possibility of using additional mechanisms by the government to increase productivity and competition at the local market.