Industrial price index  growth slowing due to industrial sector  decline

ArmInfo.In Armenia, the industrial price index decreased from 102.9% to 102.8% in January-August 2025 compared to the same period in 2024. This decline  was noted alongside a shift in the annual dynamics of the industrial  sector, moving from  a 13.7% growth to a 7.8% decline, with a volume  of 1.8 trillion drams ($4.5 billion),  according to preliminary data  from the RA Statistics Committee.

In August 2025, compared to August  2024, the industrial price index increased from 103.5% to 105.1%.  This increase occurred  as the  industrial sector's growth  accelerated from 2.1% to 5.8%.

During these periods, inflation was recorded in the Armenian consumer  market. Specifically, in January- August 2025, compared to the same  period in 2024, inflation was 3.2% compared to compared to August  2024. In August 2025, inflation was 3.6%, compared to a deflationary  0.1% and an inflationary 1.3%, recorded in the same periods a year  earlier. Moreover, inflation in the consumer market was mainly  supported by an increase in food prices: in January-August 2025  compared to the same period in 2024 - by 5.1%, and in August 2025 to  August 2024 - by 5%.  In January-August 2024 an annual decline in  food prices of 2.3% was recorded and in August 2024 there was an  annual price increase of 1.3%. At the same time, services continue to  rise in price: by 3% in January-August 2025 compared to the same  period in 2024 and by 3.2% in August 2025 compared to August 2024,  against almost similar growth rates a year ago - 2.9% and 3.3%,  respectively.

 It is worth noting that this is accompanied by a slowdown in  economic activity growth in Armenia in January-August 2025 from 9% to  7.1% per annum, and an acceleration of growth from 5.6% to 7.5% in  August 2025 to August 2024. Additionally, there has been a  deterioration in the annual dynamics of foreign trade turnover  in  January-August 2025 with a 41.1% decline from 70.9% growth in the  same period of 2024. This decline is a result of a decline in both  exports - by 48.8%, and imports - by 34.9% (against a significant  growth of both exports and imports a year ago by 2.1 times and 86.8%,  respectively). Moreover, in August 2025, compared to August 2024, the  volume of foreign trade fell by 33.7% due to a reduction in exports  by 40.8% and imports by 28.3%, while a year earlier in August 2024,  compared to August 2023, foreign trade turnover showed an increase of  33.3%, largely due to an increase in exports by 58.1%, rather than  imports by 18.7%. (The average exchange rate of the dram in  January-August 2025 was AMD 389.39 drams/$1).