Inflation in Armenia rises by 1.3% in August

YEREVAN, September 9. /ARKA/. Inflation in Armenia increased by 1.3% year-on-year in August, following a 1.4% rise the previous month, largely due to rising food prices, according to a weekly macroeconomic review from the Eurasian Development Bank (EDB).

Food prices saw a second consecutive month of growth, rising by 1.0% in August, compared to 0.7% in July. Additionally, service sector prices accelerated slightly, with a 3.3% year-on-year increase, up from 3.1% in the previous month. However, deflationary trends in the non-food sector intensified.

Despite the inflationary uptick, the rate remains below Armenia’s Central Bank target range. The EDB maintains its forecast for year-end inflation at 1.5%.

Armenia’s 2024 state budget sets inflation at 4% (±1.5%). The Central Bank projects inflation to close the year between 0.9% and 1.3%, with expectations for 2025 and 2026 set at 3.8%-3.2% and 3.7%-4%, respectively.

Global financial institutions like the World Bank, IMF, and Asian Development Bank predict Armenia’s inflation to range from 3% to 3.7% over the next two years.