Price index for industrial products in Armenia, began to rise amid  high growth in industrial production

ArmInfo. In Armenia, the price index of industrial products began to rise. Thus, in January-April  2024, the price index for industrial products totaled 100.7% (versus 98.9% in the same period in 2023). This was observed against the backdrop of a sharp acceleration in the y-o-y growth of the industrial sector from 2.4% to 26.8% in January-April 2024, providing volumes of 953.3 billion drams ($2.4 billion).

According to the preliminary data from the RA Statistical Committee,  in April 2024,  compared to April 2023, the price index of industrial products  increased to 103.7%, while in April 2023, compared to April 2022, a  decrease to 96.7% was recorded. In April 2024, compared to April  2023, the industrial sector showed an increase in volumes of 16.3%,  while a year ago it was in decline by 0.8%.

It is noteworthy that during these periods under review, deflation  was recorded in the Armenian consumer market. In particular, in  January-April 2024, compared to the same period in 2023, deflation  was 1.1%, and in April 2024 compared to April 2023, deflation was  recorded at 0.7%, against inflation of 6.2% and 3.2%, respectively  during the same periods a year ago. Moreover, deflation in the  consumer market was mainly supported by a decrease in food prices: in  January-April 2024 compared to the same period in 2023 - by 4.5%, and  in April 2024 compared to April 2023 - by 3.3%, while a year earlier,  during the same periods, an increase in food prices was recorded - by  6.5% and 1.8%, respectively.

It is worth noting that this is accompanied by an acceleration in the  growth of economic activity in Armenia from 12.2% to 13.2% per annum  in January-April 2024, and the growth slowdown from 12.1% to 10.4%,  in April 2024 by April 2023. In parallel, in January-April 2024 there  is an acceleration of the already high y-o-y growth rate of foreign  trade turnover from 99.4% to 2.4-fold, as a result of accelerated  growth of both exports - from 2.1-fold to 2.8-fold, and imports from  93.9% to 2.1-fold. An acceleration in the growth rate of foreign  trade turnover was also observed in April 2024 compared to April 2023  -from 83.5% to 2.7-fold, which was due to the acceleration of y-o-y  growth of both exports - from 81.3% to 2.9-fold, and imports - from  84.7% to 2.6-fold. (The average settlement exchange rate for the dram  in January-April 2024 was 400.16 AMD/$1).