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“Inflation has accelerated over the past year. Prices continue to rise in a number of countries and, in general, throughout the world. Inflation is not so high in our country – the average was about 9% during this year,” Gevorg Papoyan, the Chair of the NA Standing Committee on Financial-Credit and Budgetary Affairs, noted at the extraordinary sitting convened on July 14. According to him, although the National Assembly has set certain targets, there is no improvement in the situation.
The issue of inflation, current problems and solutions was debated at the extraordinary sitting of the Committee. The representatives of the executive and legislative bodies, as well as the business community were present in the debate.

The Governor of the RA Central Bank Martin Galstyan presented the inflation situation in our country in detail. According to him, the Central Bank implemented a targeted low inflation policy. Due to the pandemic, prices have risen since the end of 2020. The CB Governor noted that Russia and Ukraine produce about 30% of the world grain. “If the price of wheat abroad increases, it immediately affects our prices,” the CB Governor said.

Martin Galstyan noted that inflation has also changed people’s behavior – people started buying more food products. The increase in the demand also contributed to inflation.

According to the Governor of the Central Bank, the CB predicted inflation in 2020. That is why the interest rate has increased, which has mitigated the acceleration of inflation to some extent. Inflation was 9.6% in November 2021, but as a result of our implemented policy, we closed it at 7.7%,” Martin Galstyan noted.

Martin Galstyan stated that the RA Central Bank will bring inflation to the level of 4%.

The RA Minister of Finance Tigran Khachatryan urged everyone, both legislative and executive bodies, the business community and the representatives of mass media, to follow the monetary policy implemented by the Central Bank and support the structure.

He also noted that 10.2% economic activity was recorded during 5 months of this year, and as a result of the fiscal policy implemented by the Government, more taxes were collected during 6 months.

Gegham Gevorgyan, the RA Chairman of the State Commission for Protection of Economic Competition, referred to the problems of food market. According to him, the market sets prices.

The RA Deputy Minister of Economy Ani Ispiryan proposed to subsidize exporting companies, regarding it the RA Minister of Finance Tigran Khachatryan noted that the Government is a collegial body, and the issue should be resolved in the executive power at first, and then presented to the legislative body.

The speakers answered the NA deputies’ questions.

In his final speech, Gevorg Papoyan, the Chair of the RA NA Standing Committee on Financial-Credit and Budgetary Affairs, urged the RA CB Governor to bring inflation to the target of the mid-term sector within the framework of the toolkit of the Central Bank and to restrain all the risks that exist.

“We should do the best for the economy,” Gevorg Papoyan said.