July 16
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During the second quarter of 2024, Armenia's 12-month inflation continued to remain below the target level, reaching 0.3 percent in May. The 12-month normal inflation remained in the negative range, making -0.5 percent in April. Governor of the Central Bank of Armenia (CBA), Martin Galstyan, announced this to a press conference Tuesday.

According to him, in the second quarter of 2024, the risks of economic growth slowing down have remained in the world and in Armenia's main partner countries. Global inflation continues to slow down, but prices for hard-priced goods and services in Armenia’s partner countries still remain relatively high.

"(...) weak deflationary effects from the external sector still persist on Armenia's economy.

In the second quarter of 2024, high economic activity was maintained in Armenia, which was greatly contributed by the considerable growth of construction, trade, and industry branches. (...). External demand for domestic services slows down compared to 2023, and risks of additional demand stimulation by fiscal policy remain material. At the same time, labor market conditions are softening somewhat, reflected by some decline in wages, hard-priced services inflation, and inflationary expectations.

Amid high uncertainty, given its commitment to the achieve the goal of price stability, the [CBA] Board is considering multiple scenarios in its deliberations.

(...) the CBA Board decided to continue the gradual easing at a slow pace. The Board will continue to monitor the economic development scenarios and is ready to take appropriate actions to ensure the goal of 4-percent inflation and price stability [in Armenia] in the medium-term horizon," said the CBA chief.

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