Inflation to return to projected target band within months, Armenian economy minister says

YEREVAN, March 12. /ARKA/. After a substantial rise in February 2021, the inflation in Armenian is expected to return to the projected target band in the coming months, Minister of Economy Vahan Kerobyan told reporters on Friday.

According to him, the rise in prices for a string of produces is to be blamed not only on domestic but also numerous international factors.

He said transportation costs from China, especially for maritime transportation, have increased because of infrastructure problems, which also caused an increase in food prices all over the world. In his words, the Central Bank and the government of the country are working towards containing the inflation as much as possible.

“Therefore, there is no need to panic because of the sharp rise in prices for some foods, because if we look at the global trends it’s bad that prices are growing, but we need to understand the fundamental reasons behind it,” Kerobyan said.

“I have no doubt that the colleagues from the Central Bank keep the situation under control and promptly respond to inflation, and I am sure that in the next months we will see positive dynamics and the return of inflation to the target band,” Kerobyan said.

According to the National Statistical Committee (NSC), the consumer prices index in February increased by 5.3% compared to February 2020, and by 0.6% from January 2021. In February 2021, compared to February 2020, prices for food products and soft drinks increased by 7.8%, and compared to January of this year – by 0.6%.

The government’s GDP growth projection for 2021 is 3.2%, while inflation is set at 4% (± 1.5%). -0-

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