YEREVAN, July 15. /ARKA/. Inflation changes people’s behavior pressing those of them who live in a country with a high inflationary environment to increase consumption, contributing that way to creation of additional agitation and additional inflation, according to the chairman of Armenian Central Bank Martin Galstyan.
Speaking Thursday at a meeting of the parliamentary committee on fiscal issues, Galstyan stated that prices grow in Armenia not only for seasonal foodstuffs such as fruits and veggies, imported grains, sugar, vegetable oil, but also for services.
“We are beginning to worry about this phenomenon, namely about the inflation prompted by increased demand, which is caused partly by the arrival of tens of thousands of Russian citizens in Armenia,” stated Galstyan. He said the Central bank responded by raising the refinancing rate.
“At the end of 2020 we decided to raise the rate by 3.5%. As a result, due to the proactive policy of the regulator, the refinancing rate did not rise much and inflation generally declined. In particular, the inflation peak was observed in November 2021 – 9.6%, then in December 2021 it fell to 7.7%, in January it made 7.4%, and in February – 6.4%, in contrast to other countries where inflation was consistently rising,” he said.
Galstyan said also that the revaluation of the dram against the US dollar and Euro in the current situation is not the result of special policy of the Central Bank, but an objective process.
“It will be impossible to cope with the rise in prices without the intervention of the Central Bank,” Galstyan said. ($1 – 410.67 dram). –0–
