ArmInfo. In the consumer market of Armenia in March 2025, there was a recorded inflation of 3.3% compared to March 2024 (compared to the deflationary 1.2% the previous year). This increase was provoked by the rising prices of food products and services. In the first quarter of 2025, inflation was significantly higher than the previous year's quarterly level - 2% against 0.2%, which was also a result of the rise in prices of food products and services.
According to the Statistical Committee of the Republic of Armenia, in March of this alone inflation of 0.5% was recorded (compared to a deflationary 0.2% a year earlier in the same month). This increase was primarily driven by the growth in prices for food (by 0.7%) and services (by 0.3%). In Yerevan, consumer prices increased by 0.5% in March, compared to a 0.2% decline in March 2024. In the first quarter of this year, the rise in inflation was mainly caused by a 3.7% increase in food prices and, to a lesser extent, a 1% increase in services, with a 0.2% decrease in non-food goods. In contrast, a year earlier in the first quarter of 2024, there was a 1.4% decrease in non-food goods, an insignificant increase in food prices by 0.5% and an increase in service tariffs by 0.7%.
In the first quarter of 2025, inflation was recorded at 2.5%, compared to a deflationary 1.2% in the same period in 2024.. Moreover, food products rose in price by 4.1%, services increased in price by 2.7%, and non-food products fell in price by 1.1%, while a year earlier, food products fell in price by 4.9%, and non- food products and services rose in price by 0.4% and 3%, respectively. In March 2025 to March 2024, inflation of 3.3% was driven by an increase in prices for food products by 5.4% and services by 2.9%, with a decrease in prices for non-food products by 0.5%, while a year earlier in March 2024 to March 2023, deflation occurred due to a decrease in prices for food and non-food products by 4.3% and 0.1%, respectively, with an increase in tariffs for services by 2.5%. In the food market, vegetables and fruits saw in year-on-year price increases (March 2025 to March 2024) by 21% and 11.3%, respectively (compared to a decrease in prices for vegetables by 13.8% and fruits by 2.7% the previous year).
In March, fruits saw a significant increase in price of 4.9%, while vegetables only increased by 1.7%. This is a change from March 2024 when prices for fruits remained unchanged and vegetables increased in price by 1.2%. The average weighted inflation for vegetables and fruits in March of this year amounted to 2.88%, accounting for 8.28% of the consumer basket and impacting consumer prices by 0.22 percentage points. The prices of trout also increased significantly year-on-year - by 21.5%, coffee - by 17.5%, cocoa - 16%, sunflower oil - by 13.6%, butter - by 13.2%, chocolate - by 11.8%, while tea increased more modestly - by 6.1%, flour - by 4%, beans - by 3.5%, rice - by 2.3%, bread - by 2.2% and pasta - by 0.8%. At the same time, there was an annual decrease in the prices of sugar and granulated sugar - by 5.1%, cheese - by 4.6%, eggs - by 2.5%, poultry - by 2.3%, milk - by 1.3%, beef - by 0.9%, pork - by 0.5%, cottage cheese - by 0.4%. Cigarettes increased in price by 4.8% per annum, compared to an increase of 8.2% the year before. Of the alcoholic beverages, vodka has increased in price most noticeably in the annual context - by 6.5%, and wine and beer have increased in price more modestly - by 2.1% and 1.4%, respectively, whereas a year ago wine fell in price by 1.2%, and vodka and beer increased in price more significantly - by 10.1% and 5.1%, respectively.
Bottled mineral water has increased in price by 1% year-on-year (as the previous year). In the non-food market, the annual growth in prices for jewelry has accelerated - from 6.4% to 20.2%. Large and small household electrical appliances and equipment have increased in price - by 3.6-1.9% (compared to 3.1- 3.9% the previous year), hand tools and accessories - by 0.8% (compared to 0.4% the previous year). Medicines have begun to grow in price - by 3.7% per annum, gardening tools - by 9.4% per annum, and medical equipment - by 1%, whereas a year ago there was a decrease in the price of this group of goods by 4.7%, 8.7% and 0.9%, respectively. Clothing and footwear have started to fall in price - by 3.9% and 1.6% per annum (compared to a price increase of 0.2% and 2.9% the previous year), furniture - by 0.4% (compared to a price increase of 3.7% the previous year), tableware - by 1.3% (compared to a price increase of 1.8% the previous year). The prices of building materials remained in decline - 1.1% per annum (compared to a 1.4% decline the previous year), disposable household goods - by 3.7% (compared to a 1.7% decline the previous year). Gasoline increased in price year-on-year (March 2025 to March 2024) by 0.6%, and diesel fuel fell in price by 4.9%, while a year ago there was a jump in the cost of gasoline by 35.8% and a resumption of growth in diesel fuel prices by 2.1%.
In January-March 2025, gasoline prices remained unchanged while diesel fuel saw a 0.4% increase, compared to a decrease in the price of both gasoline and diesel fuel a year ago by 6.6% and 4.3%, respectively. As for tariffs for services, a noticeable increase was recorded year-on-year in preschool and primary education - by 12.3%, comprehensive services for organizing recreation - by 11.6%, transport - by 12% (and the same for insurance), higher education - by 7%. Tariffs for hairdressing and SPA salon services accelerated in growth - from 3.3% to 13.8%, medical - from 1.7% to 3.6%. Dental clinic services increased in price by 5.6%, and doctor's consultations - by 9.6%. In the hotel business, services became cheaper by 2.6% (compared to a 1.6% increase the previous year). Postal services also became cheaper year-on-year - by 5%, services of tourist and sporting events - by 5.2%. Dry cleaning and clothing repair services, as well as clothing rental salons, continue to rise in price - by 5.3% per annum (against 3.1% a year ago). Apartment renovation services also began to grow faster - by 4.1% (compared to 2% the previous year).
Financial services slowed in growth from 7.7% to 1%. In March 2025, inflation was at 0.5% accompanied by a revaluation of the dram against the dollar by 0.7%. During the first quarter of 2025, with inflation at 2%, the dram strengthened against the dollar by 0.9%. For comparison, in March 2024, deflation of 0.2% was accompanied by a 1% revaluation of the dram against the dollar, and in the first quarter of 2024, inflation of 0.2% was accompanied by a 1% strengthening of the dram against the dollar. In March 2025, compared to March 2024, with inflation at 3.3%, the dram strengthened against the dollar by 1.9% - from AMD 400.4 to AMD392.8 / $ 1, while in March 2024, annual deflation of 1.2% and a devaluation of the dram against the dollar by 3.1% were recorded (from AMD 388.4 / $ 1 in March 2023).
Note that starting from 2025, the targeted inflation level is set at 3% with an accepted range of deviations of +/- 1 p.p. (compared to the previous 4%, +/- 1.5 p.p.). The RA Law "On the State Budget of Armenia for 2025" specifies that the Central Bank, will henceforth be guided by the new inflation target (3%, +/- 1 p.p.) when making decisions on monetary policy.
