There is also a positive aspect to inflation, says Hovik Aghazaryan: 'Aravot'

According to the newspaper 'Aravot', 'Prices of not only seasonal food products such as tomatoes and cucumbers are rising, but also the prices of non-seasonal products, most of which are imported, like wheat, sugar, oil, etc. Interestingly, the prices of services are also increasing. Inflation can occur in two ways: the first is from supply; if wheat prices increase abroad, we bring that inflation to Armenia. The second phenomenon is that we are consuming more than our production capacities allow. By creating excitement or demand, people are increasing the price of these goods. The Central Bank responds to this phenomenon, as it is difficult to combat inflation arising from supply. In Armenia, there is demand-driven inflation, and one of its main sources is the people coming from Russia or other countries to Armenia, who create additional demand for our goods and services,' said Martin Galstyan, the president of the Central Bank, explaining the reasons for inflation during a discussion organized by the parliamentary financial and budgetary committee.

'Aravot' inquired from the ruling party MP Hovik Aghazaryan whether the inflation in Armenia is indeed due to the arrival of Russian tourists, suggesting that if 1 million tourists come to Armenia, we will be affected. Aghazaryan responded, 'We should not fear inflation; there is also a positive aspect to inflation.'

When asked what the positive aspect is when we go shopping with a full wallet but leave empty-handed as essential goods are too expensive, Aghazaryan replied, 'If the prices of goods and services are rising and the citizens can still live, there is nothing bad about that. Not only is there nothing bad, but there is also something positive, because the market, the economy is getting stronger, and then the fact that your relative’s salary is increasing, your salary is increasing, and others' salaries are increasing means that we should not look at this process unilaterally. You see, you are a witness; we all see that inflation in Armenia is the lowest in the region.'

For more details, refer to the newspaper's current issue.