In a conversation with BMG, economist Suren Parsyan expressed concerns about the consequences of inflation, discussing data published by the Statistical Committee. He noted that both high and low inflation can harm the country's economy.
Parsian pointed out that the published data indicates a deflation of 0.3% for the first seven months of this year compared to the same period last year. In July 2024, deflation was recorded at 0.4%.
"Both high and low inflation can have negative consequences for the economy," Parsyan emphasized, adding that the "failed monetary policy" of the Central Bank in recent years has had an irreversible impact on local production.
The economist also expressed concern about the rising prices of vegetables and fruits recorded in July. He finds this situation "extremely alarming," especially considering the poverty level in the country.
"In a country with a poverty rate of 23.7%, inflation of 14.3% on vegetables and 11.6% on fruits has worsened the standard of living for ordinary citizens. Vulnerable groups are spending more than 70% of their income on food," Parsyan noted.
Earlier, BMG reported that according to the Statistical Committee of the Republic of Armenia, inflation in the consumer market reached 1.4% over the 12 months from July 2023 to July 2024. However, the rise in prices for vegetables and fruits significantly exceeds the overall inflation rate, raising particular concern.
