The Eurasian Development Bank (EDB), in its weekly macroeconomic review, predicts that inflation in Armenia will reach 1.5% by the end of the current year.
According to the report, inflation in Armenia is gradually moving towards the target: in June, it stood at 0.8% compared to 0.3% in May. This increase is attributed to the slowdown in prolonged deflation in the food sector.
"In particular, food prices in June decreased by 0.7% year-on-year, compared to a 2.0% decrease in May," the report states.
EDB analysts highlight several key factors influencing the low inflation rate. These include the reduction in the cost of imported food due to declining prices on international markets, the stability of the Armenian dram, and the slowdown in the growth of average wages.
The economic growth forecast for Armenia in the 2024 state budget is set at 7%, with inflation projected at 4% (±1.5%).
According to the report by the Central Bank of Armenia, inflation by the end of 2024 is expected to be within the range of 0.9-1.3%. The forecasts for 2025 and 2026 are 3.8-3.2% and 3.7-4%, respectively.
