Inflation in Armenia continues – Alpha Economics

In 2026, Armenia has continued to experience rising prices. The consumer price index increased by 3.8%, but this aggregate figure does not fully reflect the situation.

For example, the 12‑month inflation rate for food, within the context of the overall consumer price index of 3.8%, amounted to 5.9%. Inflation growth was recorded not only compared to January of the previous year but also compared to December—on a month‑to‑month basis.

A more realistic picture can be obtained by examining changes in the prices of essential goods and services. Over the past twelve months, the cost of flour, pasta, butter, and vegetable oil rose by 5.5%, 8.2%, 7.3%, and 6.5%, respectively. Prices for healthcare, education, and transportation also increased. In fact, not only food prices are rising, but also the cost of basic services.

The increase in property tax, changes in tax legislation, and rising transportation costs—all of these, as predicted, triggered chain inflation. Of course, there are other reasons as well, including external inflationary pressures, growing domestic demand, and rising incomes in some regions, but the factors mentioned above undoubtedly had an impact.

It is noteworthy that price increases were observed compared to the last month of the previous year. At the end of 2025, we explained the rise in prices, among other things, by certain objective factors, namely the increase in pre‑holiday demand. But in reality, this price growth continued.

What should we conclude from what has been said? At the very least, this is another alarming signal about the need to take measures to mitigate the social consequences of inflation.