Food prices are up about 12% in 2021 for two main reasons. One is inflation from foreign markets, the other is the seasonal rise in prices for certain goods, said head of the Central Bank of Armenia Martin Galstyan.

“For example, inflation in Armenia was 7.7%, in the US - 7%. There has not been such inflation in the United States of America since 1982. Inflation in Russia currently stands at 8.4% and continues to rise. We lowered the bar of 9.6% to 7.7%. Georgia is experiencing double-digit inflation.

I don’t think it’s necessary to expect that inflation in terms of products this year will repeat the behavior of 2021, in the case of our baseline scenario, this is not the case. We expect food prices to rise at a slower pace,” Galstyan said.

When asked what will happen in connection with regulated prices, he noted: “We have already calculated the expected inflation as a result of changes in water and electricity tariffs. According to our estimates, it will be 0.6% per year. With regard to electricity, there is the possibility of a secondary effect. Overall inflation related to regulated prices, according to our estimates, will be 1-1.5% per year. That is, it will be added to the annual inflation.”