YEREVAN. – In December 2020, an inflation of 3.4 was registered in Armenia; at the same time, the 12-month inflation was 3.7 percent. The governor of the Central Bank of Armenia (BA), Martin Galstyan, told this to a press conference on Tuesday.

According to him, the rise in inflation is due to rising prices for imported food. According to him, the 12-month natural inflation reached 3.6 percent in Armenia. "Inflationary trends are observed in the global market of raw materials and food. Due to the pandemic and the uncertainty of the martial law, economic activity in Armenia was lower than expected in the fourth quarter of last year, particularly in the services sector. The expected decline in the pace of loans to the economy will also have an impact on domestic demand," the CBA chief added.

Galstyan stressed that the CBA Board attaches importance to structural changes in order to increase the domestic economic potential, including through monetary policy. "Inflation indicators will be at the targeted 4 percent level," he said.