Hrant Bagratyan to Pashinyan: Unfortunately, Inflation Has Always Been Low in Recent Years

If the Prime Minister had been attentive, he would have noticed that the inflation rate in 2018 was 2.5% and not 1.8%. This was stated by former Armenian Prime Minister and economist Hrant Bagratyan on his Facebook page.

We present the entire post below:

“Prime Minister Pashinyan has announced that contrary to the wishes of some, the inflation rate for 2018 constituted 1.8%. In this regard, he expressed satisfaction with the work of the Central Bank and the government. I must note the following.

First, if the Prime Minister had been attentive, he would have seen that the inflation rate in 2018 was 2.5% and not 1.8% (see: Armstat). We are talking about the annual average inflation, not the peak. The Armenian consumer paid 2.5% more for goods and services in 2018 compared to 2017. However, there is no reason to be pleased with either 1.8% or 2.5% (unfortunately, in recent years, inflation has always been low).

Our studies show that to accelerate economic growth, there must be an inflation rate of 4.5-6%. The low inflation rate in 2018 is one of the reasons for the low economic growth (5-5.5%). We need the people to receive more money, rather than cling to unchanged prices.”