If there are objective և subjective reasons for inflation, it is one thing, but if it was possible to curb it, it is another thing, economist MP Tadjos Avetisyan told Aysor.am.
“Inflation leads to a decrease in people’s real incomes, that is, the purchasing power of salaries or benefits decreases. Prices are rising, incomes are falling, this is a direct, direct factor of poverty, deteriorating the quality of life.
In other words, when people’s real incomes decrease, this leads to the impoverishment of the moderately poor, the extreme impoverishment of the poor, and even the reduction of the quality of life of those with average incomes, “said Tados Avetisyan.
According to him, the average consumer price index in Armenia is already 7.1%, it is constantly growing, on the other hand there is inflation in the food market approaching 20%, and the average salary has increased by about 6%.
“If we add to all this that pensions have not increased, the amount of insecurity benefits has not increased, everything becomes clear. This causes complicated social problems for people, no matter how much they try to explain, manipulate, make promises that they could not do now, they will control inflation next year, it is an obvious lie. Because next year’s state budget presents a rather high average inflation target, higher than it was set for this year. “If we had 7-7.5% real inflation in the conditions of 4-4.5% target, they set a higher target for the next number,” said Tados Avetisyan.
The economist deputy asked a question: what does the government do in the conditions of inflation, when it is the number one responsible for sustainable economic development and investments?
“The government is also responsible for social problems, and the socially vulnerable suffer the most from inflation. 35 thousand drams is a serious problem for the recipient of family benefits, when the price of oil rises by 500 drams in a year, this is what the government has to do. The government should start raising social payments. “It is not a gift they give to the citizens, but they only redistribute the incomes,” the deputy said.
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