Slowdown in inflation in Armenia is linked to price dynamics in the food segment – ​​EDB

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YEREVAN, October 7 /ARKA/. Inflation in Armenia slowed to 0.6% y/y in September after 1.3% y/y a month earlier, which is due to price dynamics in the food segment - food products fell in price (-1.0% y/y in September after +1.0% y/y a month earlier). This is stated in the weekly macro review of the Eurasian Development Bank (EDB).nbsp;br/pp

In September, the growth of prices for services continued to accelerate, amounting to 3.6% y/y after 3.3% y/y a month earlier. At the same time, disinflation in the non-food segment intensified. Inflation still remains below the target range of the Armenian Central Bank, the bank says.nbsp;/pp

At the same time, the EDB’s forecast for inflation in Armenia remains unchanged – 1.5% y/y by the end of the current year.nbsp;/pp

Inflation figures and forecastsnbsp;/pp

In the state budget for 2024, inflation is set at 4% (±1.5%). According to the Central Bank's monetary policy report for the third quarter of this year, inflation is expected to be within 2.1-2% by the end of 2024, the forecast for 2025 is 4-3.2%, for 2026 - 4.2-3.8%, for 2027 - 4%./pp

The WB expects inflation in Armenia to be 3% in 2024, 3.5% in 2025 and 4% in 2026. The IMF forecasts that prices will rise by 3.1% in 2024 and by 3.7% in 2025. According to ADB forecasts, inflation will be 0.8% in 2024 and accelerate to 2.5% in 2025. EDB expects inflation at the level of 1.5% at the end of the current year. -0-/p