Monday, December 6 2021 12:50

ArmInfo. This January-November, 6% inflation was recorded in Armenia`s consumer market against 0.3% in the corresponding period last year, the cause being a 9.1% rise in prices for foodstuffs (including alcohol and cigarettes) and a 7.4%  rise in prices for nonfoods, with a 1.5% rise in prices for services.  Last January-November saw a 1% rise in prices for nonfoods, with a  0.9% reduction in prices for foodstuffs and a 1.4% rise in prices for  services recorded.

As compared with last January-November, a 7.1% inflation was recorded  in Armenia`s consumer market (against the 1% inflation the previous  year), which was caused by a 10.9% rise in prices for foodstuffs, an  8.8% rise in prices for nonfoods and a 1.9% rise in prices for  services. This is greatly different from what was recorded last  January-November as compared with the corresponding period 2019 - a  0.8% rise in both foodstuffs and nonfoods prices, with a 1.3% rise in  prices for services. This January-November, a 0.5% average monthly  rise in prices was recorded in Armenia`s consumer market against  0.03% last year.  A 9.6% rise in consumer prices was recorded this  November against last November (a 1.6% rise in November 2020 against  November 2019), which was caused by a 16.1% rise in foodstuffs prices  an a 9.9% rise in nonfoods prices (against 1.7% and 1% respectively  in November 2020 as compared with November 2019), and a 1.8% rise in  service prices (against 1.5% in the previous period). 

The monthly inflation remained low. Specifically, 1.7% inflation was  recorded this November (against 0.7% this October and 1.3% last  November), due to a 3.3% rise in foodstuffs prices, a 0.8% rise in  nonfoods prices and a 0.4% rise in service prices against 2.6%, 0.6%  and 0.1% rise respectively last November. This November, a 1.8% rise  in consumer prices was recorded in Yerevan against 1.3% last  November.

This November, the 1.7% rise in consumer prices was accompanied by  0.3% AMD appreciation against the USD. This January-November, the 6%  inflation was accompanied by 8% AMD appreciation against the USD. On  the other hand, last November the 1.3% inflation in the consumer  market as accompanied by 1.6% AMD depreciation against the USD. Last  January-November, the 0.3% inflation was accompanied by 4.5$ AMD  depreciation against the USD. The AMDUSD exchange rate averaged AMD  477$1, a 4.5% drop as compared with last November (AMD499$1) and  nearly equal to the November 2019 exchange rate (AMD 477$1). 

In its revised October forecast, the World Bank notes that the  average inflation in Armenia is expected to exceed the targeted  inflation (4%, +/-1.5) and reach 6.1% (against 1.2% in 2020). In the  medium term, the World Bank expects inflation in Armenia to reach the  target - going down to 4.2% in 2022 and to 4% in 2023, due to the  monetary policy of the RA Central Bank aimed to anchor inflation  expectations. The WB warns that the 2021 higher inflation rates will  affect the equal conditions and welfare of households.