1.4% y/y inflation recorded in Armenia in Nov 2024 

ArmInfo. In the consumer market  of Armenia, annual inflation in November 2024 amounted to 1.4%,  against a deflationary 0.5% in the same period of 2023. This was  provoked by an increase in tariffs for services by 3%, in parallel  with which there was an increase in the price of food products by  1.9% and a decrease in the price of non-food products by 2.1%. 

As a comparison, we note that a year ago, deflation was formed as a  result of a decrease in the price of food products by 3.1%, with an  increase in tariffs for services by 2.9% and a slight increase in the  price of non- food products by 0.2%. This is evidenced by the data of  the RA Statistical Committee. In January- November 2024, inflation  was recorded at 0.4% (against a deflationary 1.5% a year earlier),  provoked by a 2.5% increase in tariffs for services and a 0.1% rise  in food prices with a 2.1% decrease in non-food prices.  For  comparison, we note that in January-November 2023, food prices showed  a decrease of 5.2%, in parallel with which there was a 0.2% increase  in non-food prices and a 2.5% increase in tariffs for services.

On an annual basis (January-November 2024 to January-November 2023),  inflation was recorded at 0.2% (against inflation of 2.2% a year  ago), accompanied by a decrease in the price of both food products by  1.6% and non-food products by 0.7%, with an increase in tariffs for  services by 3%. For comparison, we note that a year earlier, in  January-November 2023 to January-November 2022, the main impact on  inflation was due to an increase in tariffs for services by 4.6%,  rather than an increase in the price of food and non-food products -  by 0.8% and 1.8%, respectively.

Only in November 2024, inflation accelerated to 1.3% from October's  0.3% (against last year's November slight increase in inflation from  0.3% to 0.5%), provoked mainly by the acceleration of food prices  from October's 0.8% to November's 2.8%, in parallel with which there  was a slowdown in the growth of prices for non-food products from  0.4% to 0.2%, and a slower decrease in tariffs for services by 0.1%  (compared to the October 0.4% decline). A year earlier, in November  2023, inflation in the consumer market came from an increase in  prices for food and non-food products by 0.8% and 0.3%, with an  increase in tariffs for services by 0.2%. It is worth noting that the  increase in prices on the eve of the Christmas and New Year holidays  is short-term, seasonal, caused by the emergence of increased demand  for a significant group of consumer goods, which causes a general  increase in consumer prices. However, as a rule, already in January  of the new year, this trend is replaced by a general decrease in  prices.

November consumer market inflation of 1.3% was accompanied by a 0.5%  devaluation of the dram against the dollar (versus 0.5% inflation and  a 0.4% revaluation of the dram against the dollar in November 2023).   In January-November 2024, consumer market inflation of 0.4% was  accompanied by a 3.8% revaluation of the dram against the dollar  (versus 1.5% deflation and a 2% devaluation of the dram against the  dollar a year earlier). In November 2024, compared to November 2023,  the dram strengthened against the dollar by 3.4% - to 389 drams per  $1 with inflation of 1.4% (versus 402.5 drams per $1 a year earlier,  with a 1.8% devaluation, and 0.5% deflation).