Armenia’s inflation in 2025 may approach lower threshold of target – Central Bank

YEREVAN, February 4. /ARКА/. The inflation target in Armenia for the current year is set at 3%, and by the end of 2025 it will most likely approach the lower limit, Central Bank Chairman Martin Galstyan said at a press conference on Tuesday.

When asked about the reason why Armenia has the lowest inflation rate among the member countries of the Eurasian Economic Union in 2024, he replied that one of the reasons is that Armenia began to take quite radical measures against the backdrop of high inflation.

He recalled that when the country experienced an unprecedentedly high inflation of 8% in 2022-2023 due to external demand, the refinancing rate was sharply increased. He also noted that, unlike other countries, the first phase of inflation growth in Armenia was back in 2020 as part of the fight against Covid.

“Our policy has proven its effectiveness, so without having related problems, as it happens in other countries, for example, when the regulator’s tools are not enough to fight inflation, given the huge expenses of governments, we, fortunately, have certainty with monetary and fiscal policies, and the overall macroeconomic situation allows us to keep inflation in a manageable range,” Galstyan said.

In Armenia, inflation was recorded at 0.4% in November 2024  , inflation in Belarus was 4.6%, in Kazakhstan – 7.6%, in Kyrgyzstan – 5.4%, and in Russia – 8.1%.

In the state budget of Armenia for 2025, inflation is set at 3% (±1%). In December 2024, 12-month inflation was 1.5%. According to the Central Bank, inflation is expected to be in the range of 3.9–3.2% in 2025.-0-

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