Will consequences of price increases be mitigated soon?

Armenia has been experiencing persistent price increases for quite a long time. Although the cumulative consumer price index (CPI) has remained within a manageable range, describing the situation as “manageable” is not entirely objective when it comes to certain goods and services. This is especially true when it comes to the price increases of essential goods.

The cumulative CPI for January–December 2025 amounted to 3.3% compared to the same period in 2024. Within this, food prices rose by 5%, alcoholic beverages and tobacco by 6%, healthcare, transportation, and education expenses by 3.4%, 4.8%, and 8%, respectively.

The structure of the CPI already suggests that the cumulative 3.3% does not reflect an objective and complete picture. The situation becomes more evident when examining the price changes of specific product groups, particularly essential food items.

For example, the 12‑month inflation rate for meat products was 7.9%. Within this category, poultry prices increased by 4.3% compared to December of the previous year, and by 2.4% compared to November. Beef prices showed a 12‑month inflation of 11.7%, with a one‑month increase of 7.4%.

The chain of price increases continues with other food products such as pasta, bread, oil, eggs, and more.

In such circumstances, the averaged and “manageable” consumer price index is certainly not a decisive indicator for ordinary citizens. While it remains important, from a social perspective, it is crucial to study the full picture, including the causes of the price hikes.

These causes include external inflationary pressures, objectively rising demand, and stricter tax administration.

Whether objective or subjective, these causes have resulted in ongoing price increases, which require mitigation of social consequences. Naturally, this should first be expressed through a general increase in household incomes, ideally implemented through indexation, and especially concerning socially vulnerable groups.

Today, the actions being taken and the propaganda are particularly sensitive, often leaving society confused. On one hand, there are pension and non‑pension cashback programs presented as income increases; on the other hand, there are opposing claims that propaganda and reality do not match.

It is important to emphasize that the issue is not about diminishing the significance of returned funds or their social role for citizens. The issue lies primarily in technical accessibility: how available are cashless payment options for all citizens? If there are groups in society that still face such technical barriers, then it cannot be claimed that this method ensures a universal income increase.

Of course, the size of the increase also matters. This is a straightforward question addressed to Armenian citizens: in the face of the above‑mentioned price hikes, can the returned funds truly solve social problems? Incidentally, such questions arise especially when discussions revolve around achieving double economic growth.