3% inflation forecast for Armenia (video)
The prices of some products are expected to rise by 3 percent in Armenia in the near future. The central Bank says the price increase is necessary to curb inflation which is particularly important for investors. “The Central Bank’s arguments are well-reasoned and balanced and reflect the inflationary expectations conditioned by domestic and foreign circumstances,” says economist Atom Margaryan. Customs duty rates for certain imported goods, including gasoline, cigarettes and diesel fuel, alcoholic beverages, will go up starting May. “An increase in the excise tax is expected to spur inflation by 10 percent. it may become an additional inflation factor,” the economist said. The flow of remittances from Russia has reduces in the past two years which has led to a decline in the volume of domestic products and investments. Besides, oil prices will continue to slide down worldwide which will have its consequences for Armenia. “These trends are expected to continue. But we should be prepared for the worst. The Russian ruble may continue to weaken amid the continuing decline in oil prices,” Mr Margaryan stressed. Anyway, the economist thinks these price hikes will bypass Armenia. The global trends are such that prices of mass consumption products go down in double digits which will not affect prices in Armenia. “This can also be caused by monopolies, imports, domestic agreements, or certain shortcomings and weaknesses,” he continued. The economist says that in the given situation the government and manufacturers should make efforts to keep keep inflation low, stable and predictable.
