ArmInfo.According to data from the Statistical Committee of the Republic of Armenia, the consumer market in Armenia recorded an annual inflation rate of 4.5% in July 2026 compared to July 2025 (up from 3.4% a year earlier), driven primarily by rising food prices.
For the first seven months of 2026, cumulative inflation stood at 1.7% (compared to 0.6% during the same period last year), also fueled mainly by food price increases and, to a lesser extent, higher service tariffs. In July 2026 alone, a monthly deflation of 1.4% was recorded (compared to 0.8% in July 2025), driven by a seasonal 3.3% drop in food prices alongside minimal price increases for non-food goods and services.
Over the first 7 months of this year, low inflation was mainly triggered by a 2.5% increase in food prices and a 1.4% increase in service tariffs with a slight increase in non-food prices by 0.8%. While a year earlier, over the same period, lower inflation resulted from a 2.6% increase in service prices with a decrease in food and non-food prices by 0.2% and 0.8%, respectively. In January-July 2026, inflation was 4.5% compared to the same period in 2025, compared to 3.2% the year before. Moreover, food prices increased by 7.5%, services by 2.6%, and non-food goods by 1.6%. A year earlier, food prices increased by 5.1%, services by 3%, and non-food goods by 0.6%. In July 2026 to July 2025, inflation of 4.5% resulted from a more noticeable increase in food prices by 7.5%, which accelerated to 2.5% in the growth of prices for non- food products, with a weakened increase in tariffs for services to 1.8%. While a year earlier, in July 2025 to July 2024, lower inflation of 3.4% was recorded, provoked by an increase in food prices by 4.9% and services by 3.6%, with a slight increase in prices for non-food products by 0.1%. Of the food products, the most significant price increases year-on-year (July 2026 compared to July 2025) were: eggs - by 31.2%, beef - by 23.1%, cocoa - by 20.3%, lamb - by 14.7%, fruit - by 14.6%, spelt - by 11.3%, sunflower oil - by 10.3%, buckwheat - by 9.7%, milk and sour cream - by 8.2-8.8%, cheeses - by 8%, pasta - by 7.1%, cottage cheese - by 7%, tea and coffee - by 5.1-5.2%, chocolate - by 5.3%, poultry and pork - by 5.3-4.3%. Bread and flour increased in price much more modestly – by 2.2-2.5%, peas by 2.7%, and granulated sugar by 0.3%. Among food products, trout fell in price by 6.7%, rice by 4.3%, beans and lentils by 3-3.6%, and vegetables by only 0.1%.
Cigarette prices increased by 6.9% year-on-year, compared to an 8% increase the year before. Among alcoholic beverages, vodka saw the most significant year-on-year increase – by 10.8%, while beer and wine saw more modest increases – by 4.2% and 1%, respectively. Last year, beer and wine increased in price almost identically – by 2.3% and 2.6%, respectively, while vodka increased less significantly – by 5.5%. Bottled mineral water prices increased by 3.7% year-on-year (compared to a 2.9% increase a year ago). In the non-food market, annual price growth slowed for jewelry, from 26% to 22.4%, and for large and small household appliances from 3.8-5.8% to 1-1.5%, medicines and medical equipment - from 4.8-4.7% to 0.4- 1.2%. Furniture prices, after last year's 0.6% decline, have now risen by 0.9%. Clothing and footwear also began to rise in price - by 4.2-3.5% (against a decline of 2.3-1.4% a year ago). Disposable household goods also began to rise in price - by 5.2% (against a decline of 1.2% a year ago). At the same time, the annual decline in prices for gardening tools accelerated - from 4.2% to 14.2%. Gasoline and diesel fuel prices increased year-on-year (July 2026 vs. July 2025) by 7.4% and 14.3%, respectively, compared to a year-ago decline of 1.4% for gasoline and 3.9% for diesel. Liquid hydrocarbon prices (butane, propane, etc.) jumped 44.6% year-on-year.
As for services, significant annual tariff increases were recorded in the comprehensive leisure services sector – by 12.8% (compared to16% a year ago) and in the hotel industry – by 10.3% (compared to 4% a year ago). Compulsory motor third-party liability insurance rates also continued to rise – by 11% (compared to 13.4% a year ago). Rates for hairdressing and spa services slowed significantly, from 11.6% to 3.5%. Medical services increased in price more significantly than a year ago, rising by 5.2-7.1% (compared to 1.7-3.6% a year earlier), while doctor consultations and dental services continued to rise more modestly, rising by 6.4% and 2.3%, respectively (compared to 7.1% and 5.2% a year ago).
July's 4.5% annual inflation was accompanied by a 4.5% revaluation of the dram against the dollar, which was also observed in less pronounced figures a year earlier, with inflation of 3.4% and a 1% revaluation of the dram against the dollar. Specifically, the dram strengthened in July 2026 to 366.8 drams per dollar, from 384.1 drams per dollar in July 2025.
It should be noted that starting in 2025, the inflation target is set at 3% with a tolerance range of +/- 1 percentage point (versus the previous 4%, +/- 1.5 percentage points).
