S&P expects inflation in Armenia to slow to an average of 3.2% in 2026
23.02.2026,
11:16
The international rating agency S&P Global Ratings expects inflation in Armenia to slow to an average of around 3.2% in 2026 as economic activity cools.
YEREVAN, February 23. /ARKA/. The international rating agency S&P Global Ratings expects inflation in Armenia to slow to an average of around 3.2% in 2026 as economic activity cools.
"Following a period of low inflation, price pressures have re-intensified, and headline inflation rose to 3.8% in January 2026. This compares to 1.7% a year earlier. The acceleration in inflation is driven by rising food prices, as well as increased transportation and education costs," the agency's review states.
S&P analysts note that the Central Bank of Armenia's strong focus on maintaining price stability and its improved monetary policy stance have enabled the regulator to lower its inflation target to 3% (±1 percentage point) in 2025 from 4% (±1 percentage point) previously. Armenia's 2026 state budget projects inflation at 3% (±1%). According to the Central Bank's monetary policy report for the fourth quarter of last year, inflation in Armenia is expected to range from 3.8% to 2.6% by the end of 2026, depending on scenarios (A-B), and from 3.3% to 2.8% for 2027.
"Following a period of low inflation, price pressures have re-intensified, and headline inflation rose to 3.8% in January 2026. This compares to 1.7% a year earlier. The acceleration in inflation is driven by rising food prices, as well as increased transportation and education costs," the agency's review states.
S&P analysts note that the Central Bank of Armenia's strong focus on maintaining price stability and its improved monetary policy stance have enabled the regulator to lower its inflation target to 3% (±1 percentage point) in 2025 from 4% (±1 percentage point) previously. Armenia's 2026 state budget projects inflation at 3% (±1%). According to the Central Bank's monetary policy report for the fourth quarter of last year, inflation in Armenia is expected to range from 3.8% to 2.6% by the end of 2026, depending on scenarios (A-B), and from 3.3% to 2.8% for 2027.
