Central Bank President on Inflation in Armenia

The inflationary environment in Armenia has significantly eased. This was announced by the President of the Central Bank, Martin Galstyan, during a session in the National Assembly.

“This has primarily been facilitated by the monetary policy carried out by the Central Bank, the deflationary effects transmitted from the external sector, and the appreciation of the dram,” he noted.

As a result, since April, the 12-month inflation rate has remained significantly below the target level. In light of the ongoing decrease in inflation due to deflationary pressures from the external sector and certain neutralization of inflationary pressures originating from the labor market, the Central Bank has gradually loosened monetary conditions from June until the end of the year by reducing the policy interest rate by 1.5 percentage points, bringing it to 9.25 percent by the end of the year.

“As a result, the 12-month inflation rate for 2023 has been -1.7 percent, which has been accompanied by a similar behavior of normal 12-month inflation, reaching -0.4 percent by the end of the year,” added the Central Bank president.