Armenian central bank expects deflation to slow down in second half

YEREVAN, July 8. /ARKA/. Armenia’s Central Bank said today it expects the deflation rate to slow down significantly later this year, saying also it predicts a weak inflationary environment in the coming months with steady inflationary expectations.

According to official data, deflation has been recorded in Armenia since the beginning of the year. Thus, according to the National Statistical Service, consumer prices decreased by 1.5% in January-April compared to the same period in 2015.

The Central Bank said also in May 2016 the deflation was 0.7%, prompted largely by lower prices for food products, especially for vegetables and potatoes, dairy products and eggs. A 0.1 percentage point drop in the cost of non-food products also contributed to the negative dynamics of growth of prices.

“As a result, the deflationary processes in May led to a 2.1% fall in the 12 -month inflation rate”, the regulator said.

The Central Bank said under these circumstances, the Central Bank Board considers it appropriate to further reduce the refinancing rate, which will phase out the deflationary environment, as well as  return  the 12-month inflation rate to the projected target.

The Central Bank lowered the refinancing rate by 0.25 percentage points this past June 28, setting it at 7.5% .– 0–

spot_img

POPULAR

Armbanks Weekly Digest: Key Events in Armenian Financial Market (March 9–14) 

The past week in the Armenian financial market was marked by discussions of capital market development prospects at a specialized international conference, regulatory initiatives from the Central Bank, and changes to the insurance system.

Guesthouse “Bees and Beekeeping” in Lori Province

In the village of Vardablur in the Lori region, at the "Beeography" guesthouse, guests are welcomed with a honey drink, considered the guesthouse's signature dish.

Food and non-alcoholic beverages accounted for approximately 59% of Armenia’s inflation in February – WB

n February, inflation in Armenia rose to 4.3% (y/y) from 3.8% (y/y) in January. According to the World Bank's "Armenia Monthly Economic Update – March 2026," food and non-alcoholic beverages continued to be the largest contributors, increasing in price by 6.5% and contributing approximately 59% to overall inflation.

Armenia to Raise OSAGO Payout Limits on April 1 – Reason Given

In Armenia, maximum payout limits for compulsory motor third-party liability insurance (OSAGO) will increase on April 1, 2026.

Central Bank to Strictly Monitor Disclosure of Bond Issues – Galstyan

Central Bank of Armenia Governor Martin Galstyan stated the need to closely monitor issuers' disclosures when issuing bonds.

LATEST NEWS

spot_imgspot_imgspot_img