In Armenia, inflation being driven by increasing food prices 

ArmInfo. In Armenia, inflation is being driven by increasing food prices and unyielding service  tariffs. From January-May 2025, inflation reached 2.8%, with food process increasing by 5.4% and service process increasing by 1.2%.  

In contrast, non-food products decreased in price by 0.3%. A similar  trend was seen the previous year, with zero inflation from a slight  increase in food prices by 0.5% and service prices by 0.6%, while  non-food prices deceased by 2% from January to May 2024. This is  evidenced by  data from the RA Statistical Committee.

In January-May 2025, inflation in the consumer market was 3% compared  to deflation of 0.8% in January- May 2024. This inflation was due to  a 5% increase in prices for food products and a 2.8%  increase in  process for services. Prices for non-food products decreased by 0.8%,  whereas a year earlier food products had decreased in price by 3.9%,  and non-food products and services had  by 0.1% and 2.8%,  respectively.  In May 2025, , inflation accelerated to 4.3% compared  to May 2024, where it was only 0.3%  compared to May 2023. This  increase in  inflation was driven by a 7.2% rise in food prices and a  3.1% increase in services, while non-food prices decreased by 0.1%.  For comparison, a year ago in May 2024, compared to May 2023, food  prices had dropped by 1.1%, non-food prices stayed the same, and  service prices had gone up by 2.3%.

On a monthly basis, inflation slightly slowed from 0.5% in April to  0.3% in May. A year ago, April's inflation of 0.6% transitioned to  deflation of 0.8% in May. May's inflation was the result of a 0.5%  increase in food prices, a 0.1% increase in non-food prices, and a  0.1% increase in service prices. In May of the previous year, there  was a decrease in prices for food products by 1.3%, non-food products  by 0.4% and services by 0.3%. May's inflation in the consumer market  (0.3%) was accompanied by a revaluation of the dram against the  dollar by 1%, whereas in May of the previous  year, there was a 0.8%  revaluation of the dram against the dollar, with  deflation of 0.8%.  In January-May 2025, inflation in the consumer market (2.8%) was  accompanied by a 2.5%, revaluation of the dram against the dollar,  while a year earlier, with zero inflation, there was a more  pronounced revaluation of the dram against the dollar by 4.1%. In May  2025, , the dram strengthened against the dollar by 0.3% compared to  May 2024, amounting to AMD 386.60/$1 with inflation at 4.3%,   compared to AMD 387.80 /$1 (with an annual devaluation of 0.3%) and  annual inflation at 0.3% in May 2024.

Note that in 2025, the inflation target is set at 3% with a tolerance  range of +/- 1 percentage point (compared to the previous 4%, +/- 1.5  percentage points). 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 percentage point) when making  decisions on monetary policy.