EDB forecasts 2.5% inflation in Armenia by end of 2023

ArmInfo.  According to the  Macroeconomic Outlook by the Eurasian Development Bank (ADB), this  June saw a 0.5% price reduction in Armenia against a 1.3% price rise  this May. 

According to the source, such dynamics was facilitated by the decline  in prices in the food segment (-5.5% y/y in June after -2.1% a month  earlier) and the weakening of the growth in prices for non-food  products and services. The main factors limiting the rise in prices  are the strengthening of the Armenian dram and the weakening of  external price pressure on imported goods.

A significant slowdown is associated, among other things, with high  inflation in the same period last year.  During the third quarter,  price growth compared to the same period in 2022 may form near zero  values and in the rest of the year will be below the target (4 +  1.5%) of the Central Bank of Armenia. "We forecast inflation near  2.5% y/y at the end of 2023," the Bank said in a statement.