ArmInfo. Under the existing conditions, the tools available to the Central Bank of Armenia are insufficient to control inflation. Minister of Economy of Armenia Vahan Kerobyan expressed a similar opinion during a briefing on November 2.
In this regard, he explained that the general inflation in the country is "imported", since it mainly (90%) concerns imported products. According to the minister, the remaining 10% inflation is due to a sharp rise in prices in international markets for certain goods, which in parallel affected their cost in the domestic market.
"This is not our direct function to control inflation. But we are trying to help partners, including by solving logistical problems, negotiating the purchase of goods, using government levers to enable our entrepreneurs to bring goods to Armenia at a favorable price, "he said.
To note, in January-August 2021, compared to the same period in 2020, inflation accelerated, reaching 8.8%. In the short term, the Central Bank considers it necessary to continue the monetary policy aimed at neutralizing the risks of accelerating inflation expectations, while maintaining, if possible, favorable conditions for the recovery of full-fledged demand. As a result, according to forecasts of the financial authorities, inflation by the end of 2021 will amount to 7.4%, and by the end of 2022 it will be at the level of 5.2%.
