YEREVAN, July 8. /ARКА/. In an interview with CivilNet, Armen Ktoyan, a member of the Board of the Central Bank of Armenia, listed five factors influencing inflation in the country.
The first factor, he said, is the strengthening of the dram, which is currently having a restraining effect on inflation. “The current strengthening of the dram against other currencies is essentially a factor driving inflation downwards,” Ktoyan said.
The second factor, he said, is structural problems in the economy, including issues related to logistics and the specific characteristics of individual markets.
The third factor is rising prices for certain food products. Ktoyan noted that meat, dairy products, and beverages have made a significant contribution to inflation in recent months. “The meat factor as an inflationary effect has already become traditional in recent months,” he said.
According to Ktoyan, meat and meat products increased in price by 12.5% in June 2026 compared to June of the previous year.
He cited external inflationary effects as the fourth factor, including the impact of the Middle East conflict on oil prices.
The fifth factor is the population’s inflation expectations. Ktoyan emphasized that the Central Bank is concerned not only with actual price changes but also with how the population perceives inflation. “If you expect high inflation or subjectively perceive that inflation is high, then you will expect high inflation in the future,” he noted.
According to Ktoyan, such expectations influence everyday purchases and investment activity and can perpetuate inflation at a higher level.
He also noted that, compared to several countries in the region and trading partners, inflation rates in Armenia remain more favorable.
