News - Monthly inflation in Armenia reaches 1.2% in December 2025

In December 2025, Armenia experienced an increase in its overall inflation rate, recording a year-on-year rise of 3.3% as prices increased by 1.2% over the past month, according to Armenia's Statistical Committee, Armstat. The food sector, which includes groceries and non-alcoholic beverages, experienced a notable surge with a year-on-year inflation of 4.3% and a monthly increase of 2.9%. The alcoholic beverages and tobacco sectors were significantly affected, with prices rising 7.3% annually, though they saw a moderate monthly climb of 0.6%. Clothing and footwear experienced marginal inflation with a yearly rate of 0.3%, while utility costs also increased by 0.3% over the year, with a monthly increment of 0.6%. Household items, consumer electronics, and activities related to daily dwelling maintenance saw a modest annual price hike of 0.2%, although they unexpectedly dropped by 0.7% over the month. Meanwhile, in the healthcare sector, there was a steady annual price increase of 2.5%, with a slight monthly rise of 0.1%. Transport services reported a significant annual inflation rate of 6.2%, even as prices fell by 0.6% on a month-to-month basis. Communication services experienced slight yearly price inflation of 0.6% and remained unchanged month-on-month. Recreation, culture, and educational expenses displayed varied trends. The price index for leisure and cultural activities grew by 0.9% annually but decreased by an equivalent 0.9% over the month. Education recorded the highest inflation with an 8.3% annual increase, showing no change monthly. Restaurant and hotel services posted an annual inflation of 2.9%, with no movement over the preceding month. The overall inflation in the non-food sector for December 2025 reflected a 0.9% year-on-year growth, while comparisons to November 2025 showed no adjustments. Additionally, service tariffs for the population for the year rose by 3.1%, with a minimal growth rate of 0.1% over the month. The projected economic growth rate in Armenia's state budget for 2025 is set at 5.1%, with expectations for 2026 suggesting an increase to 5.4%. Central Bank reports estimate that GDP growth in 2025 could range from 5.9% to a constant 5.9% depending on scenarios (A-B), with 2026 projections varying from 6.3% to 4.1%, and 2027 expected to see a growth rate ranging from 4.9% to 5.3%. These figures indicate a cautiously optimistic yet dynamic economic trajectory for Armenia.