Central Bank Head: FAO index has stabilized and there are no new  upward trends

ArmInfo.The FAO index has stabilized in recent months and there are no new upward trends.  Chairman of the Central Bank of Armenia Martin Galstyan stated this on March 14 during a press conference.

At the same time, the head of the Central Bank noted that the FAO  index stabilized at a higher level than it was in 2020, being almost  50 points higher. Specifically, he noted the downward dynamics of the  FAO index for a number of product groups. For example, for vegetable  oil/oils, after an increase to 240 points in 2022, a decline to 130  points followed in February 2023, and for wheat, after an increase to  180 points in 2022, a decline to 150 points followed in February  2023, which in both cases is above the base 100 points.  A decrease  in the FAO index was also observed for dairy and meat products, and  for meat products almost to the base 100 points, and for dairy  products - to almost 120 points.

Current trends indicate that in the future, due to the tightening of  monetary policy by the central banks of developed countries, a  decline in the US economy and the GDP of other developed countries  will follow.

Therefore, as Martin Galstyan noted, there is a risk of recession. In  this case, he did not rule out that prices for a number of food  products (wheat, oil , sugar, dairy and meat products) will decrease.

"Our expectations are related precisely to the fact that as a result  of such a recession, outside pressure on the Armenian economy will be weak," he concluded.