Armenia`s annual inflation rate for February rose to 2.5%  driven by  higher prices for food and services

ArmInfo.In Armenia, the annual inflation rate in February 2025 reached 2.5% (compared to deflation  of 1.7% the previous year) due to the rise in prices of food products such as vegetables, fruits, butter, meat, chocolate, coffee, tea, fish and seafood.

Additionally, there has been an increase in prices  for gasoline, alcohol and cigarettes. Services have also seen a rise  in price, particularly in the areas of transport ( insurance),  medicine, education, and beauty salons. This is evidenced by  data  from the RA Statistical Committee. In particular, in February 2025,  food prices increased by 4.6% compared to February 2024, service  tariffs increased by 1.5%, and non-food products decreased in price  by 0.3%. 

In February 2024, food products became 5.9% cheaper  compared to  February 2023, while services and non-food products increased in  price by 3% and 0.7%, respectively. In January-February 2025,  consumer prices rose by 1.5% due to an increase in prices for food  and non-food products by 3.1% and 0.7%, respectively, with a decrease  in service tariffs  by 0.2%. Compared to January-February 2024,  consumer prices increased by 2.1% due to a 3.6% increase in food  prices and a 2.1% increase in service tariffs, while non-food goods  decreased by 0.9%. In January-February 2024, inflation was at 0.4%  due to a 0.8% increase in food prices and a 0.7% increase in service  tariffs, while non-food goods decreased by 0.8%. 

Compared to January-February 2023, the deflationary rate of 1.3% was  a result of a 5.2% drop in food prices while non-food goods rose by  0.7% and services rose by 3.2%.  Among food products, the most  significant annual price increases (February 2025 to February 2024)  were for vegetables - up by 20.4%, trout - by 17.7%, coffee - by  17.1%, sunflower oil - by 15.4%, butter - by 13.4%, chocolate - by  10.3%, tea - by 6.7%, fruit - by 6.1%, lamb - by 4.6%, flour - by  4.3%, and bread - by 2.8%. The prices of  eggs decreased by 6.1%,  sugar and granulated sugar by 5.8%, cheese by 5.4%, margarine by  5.3%, pork by 3.4%, pasta by 2.6%, flour by 1.8%, and beef by 1.3%.  Regarding  alcoholic beverages, vodka saw the  most significant price  increase year-on-year, rising by 7.5%, while beer and wine increased   by 1.4% and 0.4%, respectively. Bottled mineral or spring water rose  by 0.7% and cigarettes increased in price by 1.4% over the year. In  the non-food market, jewelry prices increased by 19.2%, gardening  tools by 8.2%, pharmaceuticals by 3.6%, and large and small household  electrical appliances by 4-2.4% from February 2025 to February 2024.

Clothing and footwear have decreased in price by 3.6% and 1.7%,  respectively. Disposable household goods have decreased by 3.9%,  tableware and kitchen utensils by 1.4%, building materials by 1.3%,  and furniture by 0.2%. Gasoline has increased in price year-on-year  by 0.6%, while diesel fuel has decreased in price by 5%. However, in  January-February 2025 alone, both gasoline and diesel fuel have  increased in price by 0.4% and 0.9%, respectively. The most  noticeable annual increase in prices was observed for car insurance  services - by 13%, preschool and primary education - by 12.3%,  hairdressing and spa services - by 11.2%, medical services - by  10.2%, transport - by 8.2%, higher education - by 7%, clothing repair  and dry cleaning - by 6.1%, dental clinics - by 5%, and apartment  repair and maintenance - by 4.5%.

 Financial services have experienced a significant slowdown in  growth, dropping from last year's 9.7% to the current 1%. Within the  service sector, according to statistics, the only decrease in tariffs  in annual terms was seen  in the hotel business - by 5% (compared to  a 3.7% growth a year ago). February consumer market inflation of 0.1%  was accompanied by a 0.6% revaluation of the dram against the dollar  (compared to a deflationary 0.7% and a 0.2% revaluation of the dram  against the dollar in February 2024).

For the period of January-February 2025, consumer market inflation  was at 1.5%, coupled with a 0.2% strengthening of the dram against  the dollar (compared to inflation of 0.4% and a 0.1% strengthening of  the dram against the dollar in January-February 2024). In February  2025, the AMD saw a 2.1% annual strengthening against the USD (a  positive shift from the 2.8% devaluation seen a year earlier). The  exchange rate was AMD 395.6 /$1 (from AMD 404.3/$1 in February  2024).Looking at a three-year perspective, the dram has strengthened  by 17.6% compared to February 2022's rate of AMD 480.2 /$1.