Inflation to continue slowdown, says researcher

YEREVAN, JUNE 13, ARMENPRESS. Inflation is slowing as the year-on-year inflation (May 2023 compared to May 2022) comprised 1,3% in the consumer market, while a 1,8% decrease was recorded compared to April. The inflation rate is expected to continue slowing down in the next months, according to Hayk Bejanyan, an expert at the Amberd Research Center.

Food and non-alcoholic drink prices decreased 2,1% in May of this year compared to May of 2022. Food prices alone dropped 2,3%.

But liquor and tobacco prices grew 7,8%, while clothing and footwear prices grew 6,2%.

Flour and other cereal prices dropped 12%. Egg prices grew 18,9%. The price of butter and sugar dropped 2,9% and 6,6% respectively, while the meat price grew 5,8%. The price of vegetable oil grew 3,3%.

Bejanyan believes that the inflation rate will continue to slow down in the next months.

”Last year we had a rather high inflation indicator. And as a result of this year’s relatively stable international, stable economic developments, this year’s inflation pace is expected to be lower on the high base of last year. This forecast is substantiated when we see the trend of decrease, which is regularly dropping monthly, and not displaying an independent behavior. We will continue to witness this process during the year,’ Bejanyan said.

The currency exchange rate also plays an important role in the formation of inflation.

Furthermore, the expert doesn’t predict a decrease in the consumer demand, on the contrary, it was preserved and has gotten more active due to more inbound tourists. The preserved demand was also one of the reasons behind the stabilization of the inflation environment.

“The inflation rate will continue to slow down in the next months, and the average inflation indicator at yearend will be close to the target level, in my opinion,” the expert added.

The inflation in April was 3,2% and in March 5,4% compared to the same period of 2022.

Anna Grigoryan