YEREVAN, August 29. /ARKA/. Prices registered a slight deflation in June and July at 0.5 and 0.1 percent (yoy), respectively, bringing average inflation through July down to 3.6 percent, according to World Bank’s ‘Armenia monthly economic update – august 2023.’
It says the decline in the overall CPI was mainly due to deflation in food prices (3.9 percent), transport (1.7 percent), and communications (0.5 percent).
The sharp fall in inflation was due to lower external inflationary pressures, tight monetary policy, and the continued strength of the AMD, as well as some base effects.
In its August 1 board meeting, the Central Bank reduced the policy rate by 25 bps to 10.25 percent.
According to the central bank’s June forecast, 12-month inflation will be slightly below the 4% target. -0-
