In Armenia, an acceleration in the consumption of goods and services is expected, which, according to IMF forecasts, could lead to an increase in inflation to 3.1% in 2024 (from 2% in 2023) and to 3.7% in 2025 if realized.
This is stated in the economic digest by Freedom Broker Armenia.
"If the inflation rate approaches the target level of the Central Bank of Armenia at 4%, this could be a positive factor for the market, all else being equal," the statement said.
Prolonged deflation, as noted in the economic digest, could lead to a loss of incentive for investment activity and perhaps even consumption.
"After all, why buy something today when you can buy it cheaper tomorrow? And why produce it if no one will buy it? And why maintain this production and support jobs if the goods are not needed?" - experts from Freedom Broker Armenia ask.
Earlier, BMG reported that in March 2024, there was a 12-month deflation in the consumer market in Armenia, amounting to 1.2%, with a decrease of 0.2% compared to the previous month.
