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.
