Inflation in Armenia is conditioned by the supply, and in the recent period also by the increase in prices for seasonal products. In particular, vegetable prices grew by around 66% in August compared to the same month of last year, Chairman of Armenia’s Central Bank Martin Galstyan told a news conference on Tuesday.
According to him, two key factors, including demand, affect inflation rates. In early 2021, private consumption increased by 5.9%, whereas gross capital formation decreased by 6%, thus, demand is outstripping production capacity, he said.
Martin Galstyan noted that a rise in prices for domestic services has also been recorded in Armenia.
“We are trying to convey to the public the message that in 2022 we will return to our inflation target, therefore, at the moment we are pursuing the goal of anchoring inflation expectations,” the Central Bank head said.
According to him, the influence of external factors on the national inflation rates is expected to maintai...
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