Inflation is “imported” as it’s connected with imported goods by 90%, Armenian economy minister says

YEREVAN, NOVEMBER 2, ARMENPRESS. Minister of Economy of Armenia Vahan Kerobyan claims that the current inflation in the country is connected by 90% with the high prices of imported goods. He says that the Central Bank’s tools to restrain the inflation are not enough in this case.

“There is an inflation problem. In fact, the first one who is responsible for the inflation is the Central Bank. But we understand very well that the tools the Central Bank has are not applicable in this case”, the minister told reporters in the Parliament.

He stated that the problem is absolutely not in the field of foreign exchange rate or refinancing, interest rate adjustments.

“The overall inflation is “imported”, as it is connected with the imported goods by 90%, and by 10% with those goods the prices of which have drastically increased in foreign markets, and as a result the prices have also increased in the domestic market. In such circumstances the tools the Central Bank has are very insufficient in order to fight the inflation”, the minister.

He said that the fight against inflation is not the ministry’s direct function, although he added that they are trying to help partners, even they are negotiating for the purchase of goods by using the state leverages to provide economic entities with an opportunity of importing goods at low prices to Armenia.

Commenting on his recent promise that 2021 will end with a double-digit economic growth, the minister said the nominal economic growth will be nearly 13-14%. “The ministry of economy has no direct responsibility for inflation, but of course, our target is for the nominal economic growth to be high”, he said.

Editing and Translating by Aneta Harutyunyan