In Armenia, annual inflation accelerated from 0.6% to 3.7%  in  October, driven by rising prices for food products, services in  transportation, tourism sector,  and beauty salons

ArmInfo. In October 2025,  Armenian consumer market saw higher inflation of 3.7% compared to October 2024 ( 0.6%). This was primarily due to rising prices in food products and services in the transportation, tourism, and beauty  salon sectors. Inflation for the first 10 months of 2025 was 1.4%  (compared to 0.8% deflation in the same period last year), showing a  more pronounced increase in prices for services than for food and  non-food items. According to the RA Statistical Committee, inflation  of 0.3% was recorded in October of this year alone (the same as the  previous year), driven by a 0.7% and 0.4% increase in food and  non-food prices, respectively, while service tariffs fell by 0.3%. In  Yerevan, consumer prices increased by 0.3% in October, compared to a  0.4% increase in October 2024.

Over the 10 months of this year, 1.4% inflation was driven by a more  significant increase in services prices of 3.1%, compared to food and  non-food prices of 0.7% and 0.3%, respectively. A year earlier, over  the 10 months, the deflationary 0.8% resulted from a 2.6-2.3%  decrease in food and non-food prices, while services prices increased  by 2.6%. In January-October 2025, compared to the same period in  2024, inflation was recorded at 3.3% (against unchanged prices a year  ago). Specifically, food prices increased by 5.3% (compared to a  decrease of 1.9% a year ago), services increased in price by 3% (the  same as a year ago), and non-food items fell in price by 0.1%  (compared to 0.5% a year ago).

From  October 2024 to October 2025, inflation of 3.7% resulted from a  rise in prices for food products by 5.7% and services by 2.9%, with a  slight increase in prices for non-food products by 0.9%. In October  2023 to October 2024, low inflation of 0.6% was recorded, provoked by  a decrease in prices for non-food and food products by 2.1% and 0.1%,  respectively, with an increase in the price of services by 3.3%.

Of the food products, the most significant price increases  year-on-year (October 2025 compared to October 2024) were: cocoa - by  25.3%, sunflower oil - by 18.6%, trout - by 16%, fish and seafood -  by 15.3%, coffee - by 12.6%, butter - by 12.3%, chocolate - by 12%,  lamb - by 10.6%, pork - by 9.9%, peas - by 9.1%, pasta - by 8.2%,  fruits - by 7.1%, flour - by 6%, sour cream - by 5.6%, cottage cheese  - by 5.2%, matsoni - by 4.8%, tea - by 4.1%, milk - by 4%, buckwheat  - by 3.7%, vegetables -by 3,6%, bread -by 3.6%,  beef by 3.2%,  margarine by 3%, cheese by 2.2%, and eggs by 0.3%. Additionally,  there was a year- on-year decline in the price of sugar and  granulated sugar, down 6.1%. Moreover, all of these products also  increased in price month-on-month, with the exception of fruit, which  fell by 4.1% in October.

Cigarette prices increased by 8.3% year-on-year, compared to a 1.3%  increase the year before. Among alcoholic beverages, vodka saw the  most significant year-on-year increase, up 5.3%, while beer and wine  saw more modest increases, up 3.2% and 3%, respectively. Last year,  wine fell by 1.5%, vodka saw a more pronounced increase, up 9.8%, and  beer saw a more modest 2.7%. Bottled mineral water prices increased  by 3.8% year-on-year (compared to a 1.4% increase a year ago). In the  non-food market, jewelry prices accelerated year-on-year, rising from  14.8% to 34.6%, while large and small household appliances and  equipment continued to rise by 2.5-3.2% (compared to a 3-3.2%  increase a year ago). Medicines and medical equipment prices began to  rise by 4-4.3% year-on-year, compared to a more modest 2.6% increase  a year ago, and a 2.7% decrease in medical equipment prices.  Furniture prices, after a slight 0.4% increase last year, fell by  0.1% year-on-year in October. Prices for disposable household goods  also increased by 1.1% annually (compared to a 6.3% decline a year  ago), footwear by 1.2% (compared to a 1.1% decline a year ago),  construction materials by 0.2% (compared to a 2.8% decline a year  ago), and tableware and kitchen utensils by 0.2% (compared toa 0.8%  decline a year ago). The annual decline in clothing prices began to  slow, to 2.1% (from 3.7% a year ago). Gardening tools also began to  fall in price, by 6.1% annually (compared to a 3.6% increase a year  ago).

Gasoline prices fell year-on-year (October 2025 vs. October 2024) by  1.5%, and diesel fuel by 0.6%, while a year ago there was a more  pronounced drop in prices by 5.8% and 8.4%, respectively. Over the 10  months of 2025, gasoline and diesel fuel prices increased by 0.3% and  0.7%, respectively, while last year during the same period there was  a decrease in gasoline prices by 4.9% and diesel fuel prices by 8.2%.   However,  in October 2025, gasoline and diesel fuel prices fell by  0.3% and 2.4%, respectively, while a year ago, in October 2024,  gasoline prices rose by 0.1% and diesel fuel prices fell by 0.4%.  Regarding service tariffs, significant year-on-year growth was  recorded in transportation - by 22.5% (including insurance - by 12%),  comprehensive recreation services - by 10.6%, preschool and primary  education - by 8.7%, and higher education - by 8.5%. Rates for  hairdressing and spa services accelerated - from 5.6% to 11.2%,  medical services - from 2.5% to 3.2%. 

It is worth noting  that dental services increased by 5.5%, and  doctor consultations - by 7.1%. In the hotel industry, services  increased by 1.6%, while a year ago they fell by 0.1%. Financial  sector services also accelerated in growth - from 1% to 2.1%.  October's 0.3% inflation was accompanied by a stable dram- dollar  exchange rate, while over the first 10 months of 2025, with inflation  at 1.4%, the dram strengthened against the dollar by 3.5%. For  comparison, a year earlier, October also saw inflation of 0.3%, with  a stable dram-dollar exchange rate, while over the first 10 months of  2024, deflation of 0.8% was accompanied by a 4.3% strengthening of  the dram against the dollar. In October 2025, compared to October  2024, with inflation at 3.7%, the dram strengthened against the  dollar by 1.2%, from AMD 387.2 to AMD 382.7 drams per dollar. In  October 2024, comparatively low annual inflation of 0.6% and a more  noticeable revaluation of the dram against the dollar of 4.2% were  recorded (from AMD 404.3/1$ in October 2023).

It should be noted that in the updated September forecast of the  Central Bank of Armenia, inflation is expected to be between 4.1 and  3.7% in 2025, compared to 1.5% in 2024. Further in 2026, it is  expected to approach the target level, reaching 3.7-3.2%. Moreover,  inflation in the non-tradable goods segment, characterized by rigid  prices, will decline to 2.2% in 2025 (from 2.5% in 2024), but will  rise to 3.5-2.8% in 2026. According to the International Monetary  Fund's forecast, inflation in Armenia will remain close to the target  level (3%, +/- 1 percentage point - Ed.) by the end of 2025.

Recall, starting in 2025, the inflation target is set at 3% with a  tolerance of +/- 1 percentage point (compared to the previous 4%, +/-  1.5 percentage points). The RA Law "On the State Budget of Armenia  for 2025" stipulates that the Central Bank, when making decisions on  monetary policy, should henceforth be guided by a new inflation  target (3%, +/- 1 percentage point).