Armenia Central Bank continues forecasting 8.5% inflation for 2022

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 17:25, 2 August 2022

YEREVAN, AUGUST 2, ARMENPRESS. The Central Bank of Armenia continues forecasting 8.5% inflation for 2022, as for the economic growth forecast, the CBA considers possible that the figure will be revised upward, CBA Deputy Governor Nerses Yeritsyan said at a press conference today.

“As of this moment, our previous forecast for inflation for the end of the year is maintained – 8.5%”, the CBA Deputy Governor said.

The Central Bank is making forecasts 4 times within a year. It will make a new forecast in September based on the developments. “The essence of our policy is to be able to bring inflation back to its target in a predictable period”, he said.

According to calculations, if the dram appreciation didn’t happen, inflation would have been higher by 1% instead of the 10.3% inflation registered in June.

As for the forecast for 2022 economic growth, the CBA Deputy Governor said: “Today there are actual indicators based on which we have a certain assessment and a decision over interest rates. Of course, there are some estimates for the year. It’s obvious there will be an upward adjustment if there are no other surprises from the outside world”.

Initially, the Central Bank forecasted 5.3% economic growth for 2022, but in March it revised it and lowered to 1.6%. In June the CBA again revised its forecast, rising it to 4.9%.