YEREVAN, December 30. /ARKA/. Armenia’s 12-month inflation will approach and stabilize around the target, according to the program of monetary policy for the fourth quarter and the report of the central bank on the implementation of monetary policy for the third quarter of this year.
“According to the monetary policy of the Central Bank for the fourth quarter of 2020, 12-month inflation in Armenia in the future will approach and stabilize around the target, which is due to inflation expectations from the external sector, as well as the gradual recovery of weak private demand, which persists due to large uncertainties. In the medium term, this will be facilitated by the implemented stimulating fiscal and monetary policies,” the report says.
With the expected developments in the economy in the medium term, it will be necessary to gradually reduce the stimulating monetary position, while maintaining the stabilization of inflation around the target of 4%.
“Risks of inflation deviation from forecasts in the projected horizon are generally balanced, but in the short term they are directed upward. The Central Bank is monitoring these risks and is ready to react to any of their manifestations to maintain price stability in Armenia,” the report says.
In the consumer market of Armenia, 12-month inflation in November 2020 compared to November 2019 was recorded at 1.6%. According to the National Statistical Committee, in November this year, compared to October, the country recorded a1.3% inflation. In January-October 2020, compared to the same perioda year before, prices went 1% up. In the state budget for 2020, inflation is projected at 4% (± 1.5%). -0-
