YEREVAN, December 23. /ARKA/. Inflation increased to 1.4 percent (yoy) in November, up from 0.6 percent (yoy) in October. The increase was mainly due to 3.1 percent higher prices for food and non-alcoholic beverages (mom), according to the World Bank’s “Armenia Monthly Economic Update – December 2024.
“While apartment rental prices showed almost no increase in the CPI, cadastral data revealed a 2.4 percent (yoy) increase in apartment transaction prices in central Yerevan; and a 58.6 percent (yoy) rise in the number of transactions, a surge in activity attributed to the ending of the mortgage interest rate refund program for Yerevan, effective from January 2025,” the report said.
The Armenian government’s 2024 state budget projects inflation at 4% (±1.5%), and 3% (+1%) for 2025. In November, the 12-month inflation rate was 1.4%. According to the Central Bank’s monetary policy report for the fourth quarter of this year, inflation in Armenia is expected to range from 2.1% to 1.6% by the end of 2024. The forecast for 2025 is 3.9% to 3.2%, for 2026 it is 4.2% to 3.8%, and for 2027, it is 4%.
The World Bank expects inflation in Armenia to be 3% in 2024, 3.5% in 2025, and 4% in 2026. The IMF forecasts a 3.1% increase in prices in Armenia in 2024, followed by 3.7% in 2025. According to the ADB, inflation in Armenia is expected to be 0.8% in 2024, accelerating to 2.5% in 2025. The EDB anticipates inflation in Armenia to reach 1.8% by the end of this year and 3.1% by the end of 2025.
