Inflation in Armenia Reaches Highest Level Since April 2023

In December, annual inflation in Armenia rose to 1.5%, reaching its highest level since April 2023, according to the World Bank’s report “Armenia Monthly Economic Update – January 2025.” The increase was driven by a rise in food and non-alcoholic beverage prices by 2% and an increase in medical service costs by 3.2%.

At the same time, the country experienced a decline in prices for clothing and footwear by 2.6%, furniture and household appliances by 2.5%, as well as a slight decrease in housing and utility costs by 0.2%. The average inflation rate for 2024 stood at 0.3%, significantly lower than the 2% recorded in 2023.

According to World Bank forecasts, inflation in Armenia is expected to reach 3.5% in 2025 and 4% in 2026. The Central Bank of Armenia projects inflation to be in the range of 3.2-3.9% by the end of 2025, 3.8-4.2% in 2026, and 4% in 2027. The Armenian state budget for 2025 includes a target inflation rate of 3%, with a possible deviation of 1%.

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