YEREVAN, February 12. /ARKA/. Inflation in Armenia is likely to approach the Central Bank’s projected target interval by the end of the first half of the year, the Eurasian Development Bank (EDB0 said in its weekly macroeconomic review.
“In Armenia, prices fell by 0.9% y/y in January 2024, following a 0.6% y/y decline a month earlier. This was primarily driven by the dynamics of food prices (-5.8% y/y in January after -4.8% y/y in December), amid a decline in the cost of imported products. We expect inflation to accelerate by the end of the first quarter,” the review says.
Armenian government’s inflation forecast for this year is 4% (±1.5%). In 2023 the consumer price index was down 0.6% yoy, while in January 2024, the 12-month deflation amounted to 0.9%.
The IMF expects inflation in Armenia to return to the Central Bank’s 4% target by mid-2024 and stabilize around it. -0-
