Double – digit increase in food prices continues in Armenia

In the first three months of this year, compared to the same period last year, food and non-alcoholic beverages in Armenia rose in price by 12.1%, according to the latest data from the Statistical Committee.

In March alone, compared to March 2021, this inflation is higher – 12.8%.

Last year, compared to 2020, Armenia closed with an 11.2% increase in food and non-alcoholic beverage prices.

The rise in prices in Armenia, especially food prices, started after the 44-day war, or, according to economists, the Kovid epidemic had its effect.

The guarantor of price stability in the country is the Central Bank, which for almost four years, from February 2017, reduced the refinancing rate from 6% to 4.25%. It was officially stated that the aim of this policy was to make access to finance available to stimulate economic growth.

However, in December 2020, the central bank sharply increased the refinancing rate by one percentage point to 5.25 percent. Over the past year and a half, the institution headed by Martin Galstyan has already raised the interest rate nine times, the last one on March 15, quite sharply, by 1.25 percentage points, reaching 9.25 percent.

The 2022 state budget forecasts 5.2% inflation this year.

By Editor

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