Industrial price index growth weakening due to decline in industrial  sector  

ArmInfo.  In Armenia, the industrial price index decreased in the first half of 2025 compared to the same period in 2024, dropping from 102.7% to 102.1%. This decline occurred alongside a negative shift in the annual dynamics of the industrial sector, transitioning from 18.2% growth to a 12.1% decline. The sector's total volume amounted to 1.3 trillion drams  ($3.2 billion), as evidenced by preliminary data from the RA  Statistical Committee. 

In June 2025,  the industrial price index decreased significantly,   compared to June 2024, dropping from 104.8% to 102.5%. The industrial  sector also experienced a 1.2% decline (from 1.4% growth a year ago).  It is worth noting that inflation was recorded in the consumer market  of Armenia during the periods under review. Specifically, in  January-June 2025,  inflation was at 3.1% compared to the same period  in 2024 and in June 2025 compared to  June 2024, inflation was at  3.9%. This is a significant increase from the 0.6% deflation and 0.8%  inflation, seen in the same periods a year ago. Moreover, inflation  in the consumer market was mainly supported by an increase in food  prices: in January-June 2025 compared to the same period in 2024 - by  5.2%, and in June 2025 to June 2024 - by 6.2%, whereas in the same  periods a year earlier,  a decline in food prices was 3.3% and 0.2%,  respectively. Additionally, the cost of  the services continued to  increase, rising by 2.9% - in January-June 2025 compared to the same  period in 2024 and by 3.5% in June 2025 compared to June 2024. These  rates were slightly lower, almost identical to the rates of 2.8% and  2.7% seen  a year ago.

 It is worth noting that there has been a slowdown in the growth of  economic activity in Armenia in the first half of 2025, decreasing  from 10.4% to 6.3% per annum. However, in June  2025 compared to June  2024, there was an acceleration of growth from 7.1% to 8.6% per  annum.  Additionally, there has been a deterioration in the annual  dynamics of foreign trade turnover, with a decline of 45% compared to  a 2-fold growth in the same period of 2024. This decline was a result  of a decrease in both exports - by 52.8%, and imports - by 38.6%  (compared to a significant growth in both exports and imports a year  ago, by 2.3 times and 86.5%, respectively). In June 2025, compared to  June 2024, foreign trade volume fell by 16.6% due to a reduction in  both exports by 15.9% and imports by 17.1%, while a year earlier in  June 2024, compared to June 2023, foreign trade turnover showed  growth of 34.6%, largely driven by an increase in exports by 59.9%,  rather than imports by 20.6%. (The average  exchange rate of the dram  in January-June 2025 was - AMD 391.31 /$1).