The CB Board's last session stated that 0.4% deflation was registered in August 2017, like the same month of the previous year as a result of which the 12-month inflation remained at the level of the previous month and made 0.9% at the end of August.

According to the Central Bank's official website, the natural inflation continued to rise and was 1.5% in line with the CB's expectations, while a significant slowdown in seasonal agricultural prices slowed down to some extent the anticipated recovery in general inflation.

At the same time, in August, a significant increase was observed in the structure of the natural rise in prices for butter (4.2%), meat products (0.3%), petrol (0.8%), clothing (5.2%) and shoes (6.4%).

At the board meeting, the economic situation was discussed. It was reported that the first half of 2017 was characterized by high economic activity (the economic growth was 6%), which continued in the third trimester, due to high growth in industry and services.

Moreover, it mostly neutralized the effects of the downturn in other sectors of the economy, due to which, in the third trimester, the Central bank anticipates a higher economic growth.

At the same time, it was noted that the recovery of domestic demand in this trimester was proceeding at a fast pace than expected.

"It should also be noted that there has been a sharp increase in oil prices in the international market in recent months due to short-term supply problems along with high demand. At the same time, due to the restoration of investment activity in developing countries, the demand for copper has increased, so a relatively high price increase was registered in the market, "the Central Bank said.

As a result of the discussion, according to the Council's estimates, inflation trends will persist in international commodity markets in the coming months.

"The Board is still committed to the idea that the current policy rate is incentive and will continue to be incentive for some time, continuing to influence aggregate demand, which will gradually increase the stabilization of the target index," the Central Bank said.

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