If the Conflict Continues in Iran, Inflation in Armenia Will Rise, Central Bank President

If the conflict in Iran continues, inflation in Armenia will increase by 1.2-1.7%, partly due to the price of oil. This was stated by Central Bank President Martin Galstyan during a press conference.

“According to our estimates, it is the increases in oil prices that lead to certain price increases from the use of alternative import routes, and a shift in the import of food products from Iran. This is a risk area; we are not saying this will happen, but if it does, inflation will rise by 1.2-1.7%,” he said.

He noted that regarding the impact on the economy, there are a few directions to consider, the first being the impact of the conflict on the global economy and overall economic developments. The conflict increases inflationary pressures, which would be quite an undesirable phenomenon for us. Therefore, we have given significant weight to this component in our discussions.

“Secondly, if external demand decreases, this will affect the results of our economy,” he added.

Regarding potential risks, Martin Galstyan also mentioned limitations on the ability of Armenian companies to market their products in Middle Eastern markets.