Industrial price index  growing with industrial sector sagging 

ArmInfo. In Armenia, the industrial price index increased in January- March 2025 compared to  the same period in 2024, rising from 99.7% to 102.1%. This increase occurred alongside a decline in the annual growth rate of the industrial sector, dropping from 30.4%  to 18.5% , with a total volume of 599.8 billion drams ($ 1.5 billion). This is evidenced by the preliminary data from the RA Statistical Committee. 

According to statistics, in March 2025, the industrial price index  also increased from 100% to 101.9% compared to March 2024. During  this period, the industrial sector also experienced a notable decline  in volumes by 16.9%, whereas a year ago there was a significant  growth of 33.5%. It is noteworthy that inflation was observed in the  consumer market of Armenia during this period. Specifically, in  January- March 2025, compared to the same period in 2024, inflation  was 2.5%, and in March 2025 to March 2024, inflation was 3.3%,  against the equally deflationary 1.2% in the same periods a year ago. 

Moreover, inflation in the consumer market was primarily driven by an  increase in food prices: in January-March 2025 compared to the same  period in 2024 - by 4.1%, and in March 2025 to March 2024 - by 5.4%,  whereas a year earlier in the same periods a decline in food prices  was recorded - by 4.9% and 4.3%, respectively.  Services have also  seen a rise in prices, increasing by 2.7% in January-March 2025  compared to the same period in 2024, and by 2.9% from March 2025 to  March 2024. These rates aret almost the same as a year ago - 3% and  2.5%, respectively. It is worth noting that this is accompanied by a  slowdown in the growth of economic activity in Armenia in  January-March 2025 from 14.3% to 4.1% per annum, and in March 2025 to  March 2024 - from 15.3% to 3.7%. Additionally, there has been a  deterioration in the annual dynamics of foreign trade turnover in  January-March 2025, dropping by 54.2% compared to a growth of 2.1  times in the same period in 2024. This decline is a result of a both  exports and imports decreasing by 61.8%  47.9% respectively (compared  to a significant growth of both exports and imports the previous year  by 2.7 times and 75.8%, respectively). Moreover, in March 2025,  compared to March 2024,  foreign trade fell by 31.8% due to a  decrease in exports by 65.4% and imports by 51.2%. In March 2024,  compared to March 2023, foreign trade turnover showed a significant  increase of 2.1 times due to a 3-fold jump in exports and a 56.2%  increase in imports. (The average settlement exchange rate of the  dram in January- March 2025 was AMD 395.42 /$1).