YEREVAN, March 17. /ARKA/. Inflation has components driven by supply and demand factors. This was stated by Martin Galstyan, Chairman of the Central Bank of Armenia, in response to a question from the ARKA news agency about the extent to which the current price increase is already a sustainable trend, rather than a temporary aberration.
According to the Statistical Committee of Armenia, 12-month inflation in the consumer market in Armenia in February of this year was 4.3%.
“There are significant components (of inflation – ed.) driven by supply, for example, a one-time increase in meat prices. However, we are also seeing an increase in healthcare prices (0.3%) and other components that include elements of demand,” Galstyan said.
According to him, there are currently no risks in the mortgage and real estate markets. On the contrary, most signals indicate that a certain recovery has been observed in these markets in recent weeks.
“If events around Iran develop negatively and follow the path of Syria, this could have an extremely adverse impact on both us and our neighboring countries. Currently, there are no grounds for such a scenario to materialize. We will closely monitor the situation and, if necessary, take steps to protect Armenia’s economy from negative consequences,” Galstyan said.
On February 28, the US and Israel launched airstrikes against Iran, to which the Islamic Republic responded with a series of massive attacks. The conflict escalated into a full-scale war.
