ArmInfo. The industrial price index began to rise in Armenia. Thus, in January-May 2024, the industrial price index was 102.2% (versus 98.4% in the same period of 2023), amid the sharp acceleration in the y-o-y growth of the industrial sector from 3% to 22% in January-May 2024, up to 1.2 trillion drams ($2.97 billion).
According to the preliminary data from the RA Statistical Committee, in May 2024, compared to May 2023, the industrial price index increased to 108%, while in May 2023, compared to May 2022, a decrease to 96.4% was recorded. In May 2024, compared to May 2023, the industrial sector showed some acceleration in volume growth from 5.3% to 6.9%. Notably, during these periods under review, either deflation or low inflation was recorded in the consumer market of Armenia. In particular, in January-May 2024, compared to the same period in 2023, deflation was 0.8%, and in May 2024 to May 2023, inflation at the level of 0.3% was recorded, against the inflation of 5.2% and 1.3%, in the same periods a year ago, respectively. Moreover, deflation in the consumer market was mainly supported by a decrease in food prices: by 3.9%, in January-May 2024 compared to the same period of 2023, and by 1.1%, in May 2024 to May 2023, while an increase in food prices by 4.9% and 1.2% was recorded a year earlier in the same periods, respectively. Notably, this is accompanied by a slowdown in economic activity growth in Armenia from 12.5% to 11.2% per annum in January-May 2024, and a slowdown in growth from 13.7% to 5.2% in May 2024 to May 2023. In parallel, in January-May 2024, there was an acceleration of the already high y- o-y growth rate of foreign trade turnover from 86.9% to 2.2-fold, as a result of the acceleration of growth of both exports - from 93.3% to 2.5 times, and imports from 83.3% to 99.6%. At the same time, the growth rate of foreign trade turnover slowed down from 50.5% to 32.2%in May 2024 compared to May 2023, which was due to a sharp slowdown in import growth from 52.1% to 17.2% with a restrained acceleration of export growth from 47.6% to 57.4%. (The average settlement exchange rate of the dram was 397.69 AMD / $ 1 in January-May 2024).
