ArmInfo. The annual inflation rate in Armenia eased slightly to 4.2% in May 2026, down from 4.3% during the same period last year, according to data released by the Statistical Committee of the Republic of Armenia. This modest deceleration was driven by slower year-on- year price growth in food (6.5% vs. 7.2% last year) and services (2.7% vs. 3.1% last year). Conversely, non-food prices rose by 2.1%, reversing a 0.1% decline recorded the previous year.
Within the food sector, the most significant year-on-year price spikes were recorded for eggs (+30.8%), beef (+22.8%), cocoa (+20.5%), and lamb (+17.5%). Notable increases were also observed in sunflower oil (+11.5%), pork (+11.2%), spelt/dzavar (+9.7%), sour cream (+9.4%), buckwheat (+8.9%), pasta (+8.8%), pasteurized milk (+8.2%), cheese (+7.9%), chocolate (+7.8%), cottage cheese (+6.9%), coffee (+6.4%), butter (+5.9%), and poultry (+4.7%). Flour and bread saw more moderate increases of 2.2% to 3.2%, while peas rose by 2.4%, trout by 0.3%, and granulated sugar by 0.2%. On the other hand, prices for staples like rice, lentils, and beans fell slightly by 3.7%, 1.9%, and 1.1%, respectively.
Alcoholic beverages rose faster than last year, led by vodka (+10.2% vs. 5.5% last year), beer (+4.9% vs. 1.1%), and wine (+2.2% vs. 1.5%). Cigarette prices also accelerated to 7.4% from 6.7%. Among services, comprehensive vacation packages jumped 19.6% and motor vehicle liability insurance climbed 11.9%. Hotel rates rose by 8.9%, transportation costs grew by 7.1%, and medical services increased by 5.3% to 7.4%. Meanwhile, doctor consultations (+6.4%), postal services (+2.8%), and dental services (+2.6%) saw more modest growth. Price growth for financial services and hairdressing/spa treatments slowed significantly to 1.8% and 2.2%, respectively.
In the non-food segment, jewelry prices surged by 40.3% year-on-year, compared to a 19.8% increase last year. Fuel prices also rebounded sharply: gasoline rose by 8.9% and diesel fuel by 17.1% (reversing declines of 6.8% and 8.5% a year ago), while liquid hydrocarbons (butane, propane, etc.) skyrocketed by 97%.
For the first five months of the year (January–May 2026), consumer price inflation averaged 4.5%, up from 3.0% in the same period of 2025. This five-month inflationary trend was driven by a 7.3% increase in food prices, a 2.7% increase in services, and a 1.2% increase in non-food items. This was also the case a year ago, when food and services prices increased by 5% and 2.8%, respectively, while non-food prices fell by 0.8%.
May's 4.2% annual inflation coincided with a 4.7% appreciation of the Armenian dram (AMD) against the US dollar. Specifically, the exchange rate strengthened to an average of 368.50 AMD/$1 in May 2026, compared to 386.60 AMD/$1 in May 2025. Note, starting in 2025, the inflation target is set at 3% with an acceptable range of +/- 1 percentage point (versus the previous 4%, +/- 1.5 percentage points).
