YEREVAN, October 18. /ARKA/. Inflation in Armenia will accelerate by the end of the current year, but will remain below the Central Bank’s projection of l (4±1.5%), according to the Macroeconomic Review of the Eurasian Development Bank (EDB), compiled based on October 2023 data.
“At the same time, risks of a more considerable acceleration of price growth have increased due to the surge in consumer demand and weakening of the exchange rate of the dram in late September – early October,” the review says.
The review points out that price growth amounted to 0.1% y/y in September after a 0.2% y/y decline a month earlier.
According to EDB analysts, the slight acceleration in inflation was prompted by a slower drop in food prices (minus 3.1% y/y in September after minus 4.0% a month earlier) and in the prices of imported fuel (minus 2.4% y/y after minus 4.2% y/y a month earlier).
“Growth in the cost of services continued to slow. The key factors limiting inflation in September were the strengthening of the Armenian dram and the easing of external price pressures. Tight monetary conditions also contributed to the decline in inflation,” the review reads. -0-
