Eurasian Development Bank forecasts acceleration of inflation in Armenia by year-end

The Eurasian Development Bank (EDB) expects inflation in Armenia to rise by the end of this year, but to remain below the Central Bank’s target (4±1.5%), the EDB analysists said in the weekly macro review.

“Price growth in Armenia amounted to 0.1% y/y in September after a 0.2% y/y decline a month earlier. The slight acceleration was due to a decrease in the rate of price decline in the food segment and imported fuel.

The key factors limiting inflation in August and September were the weakening of external price pressure and tight monetary conditions. We expect inflation to accelerate by the end of this year, but to remain below the target (4±1.5%) of the Central Bank of the Republic of Armenia,” the review reads.