YEREVAN, June 12. /ARKA/. Inflation is expected to be around 2.5% y/y at the end of 2023, slightly below the central bank’s target 4+/-1.5, according to the weekly macro review of the Eurasian Development Bank (EDB). Inflation in Armenia slowed to 1.3% y/y in May after 3.2% y/y a month earlier.
“Such dynamics was due to a decrease in prices in the food segment (-2.1% y/y in April after 1.2% a month earlier) and weakened growth in prices of non-food goods and services. A significant slowdown is mainly due to the high level of inflation in the same period last year,’ said ADB analyst Yevgeny Vinokurov.
The main factors that will restrain price growth are the strengthening of the Armenian dram and the decline in global commodity prices. By the end of 2024, price growth in Armenia is projected at 3.3%.
Armenian government’s growth projection for 2023 is 7%, while inflation is set at 4% (±1.5%). -0-
