Central Bank President Reveals When Inflation Will Decrease

Inflationary trends are characterized as temporary and short-term, with inflation expected to decrease from the end of the year and approach the Central Bank's target rate of 4 percent. This was stated by the President of the Central Bank, Martin Galstyan, during the presentation of the annual report on the Bank's activities at the regular meeting of the National Assembly's Standing Committee on Financial-Credit and Budgetary Affairs.

“Since the end of last year, a significant acceleration of inflation has been recorded in Armenia. It is assessed that the inflationary trends are primarily due to one-time factors associated with the devaluation of the currency and the supply of goods from international commodity markets. Therefore, it is characterized as temporary and short-term, and it will decrease from the end of the year, approaching our target rate of 4 percent,” said Galstyan.

He added that, despite a certain increase in inflation and inflation expectations, they are assessed to be manageable and are primarily anchored, also thanks to appropriate actions by the Central Bank. However, at the same time, according to Central Bank surveys, uncertainties regarding the future trajectory of inflation have increased among the society, which can pose risks for the future acceleration of inflation expectations. Therefore, the Central Bank's monetary policy will remain consistent in neutralizing any risk of accelerating inflation expectations without significantly harming the recovery of domestic demand.