Basic necessities have risen in price in Armenia

Inflation in Armenia has gained new momentum. Life in the country is gradually becoming more expensive. This is another negative forecast that came true, for which there were objective reasons at the end of 2024, including government tax policies.

Inflation in May of this year was 4.3%, compared to May 2024. However, the picture varies across different products and services.

The annual inflation rate for food products was 7.4%, while fish products have surged by more than 20%. Fruits and vegetables have also seen double-digit price increases. Healthcare, education and transport rose in price by 3.4%, 4.2% and 7.8%, respectively. Prices are rising for both important services and essential goods.

This is difficult on the one hand, because it concerns products without which it is difficult to imagine a healthy lifestyle, on the other hand, it is difficult in the context of the current social situation. And what do we have? According to the UN, about 23% of the Armenian population faces food shortages and is malnourished. Naturally, the rise in prices for basic necessities causes difficulties, especially for this segment of the population. For instance, bakery products have increased in price by 3.3%, sunflower oil by 15.2%, and bread by 3.9%.

What are the reasons for the price increase? A closer examination reveals multiple factors, including global market inflation, seasonal influences, and, crucially, the aggressive taxation policies implemented by the current government. Of course, studying the reasons is important for assessing the situation and forecasting, but in any case it is important in terms of influences. And the impact is obvious: regardless of the reasons, life is becoming more expensive: the rising cost of living affects essential goods, not luxury items.

This situation is not only a serious social problem, but it is also offensive and shameful against the background of reality and propaganda that have nothing to do with it. They convince us that poverty must be eradicated in our heads, they convince us that we are getting richer faster than the national debt is growing, they convince us that we are living 50 percent better than in 2018. In this case, each of us should ask ourselves the question: Who in our country has truly seen their quality of life improve by 50%?