YEREVAN, January 26. /ARKA/. In December 2025, Armenia’s inflation increased to 3.3 percent (yoy) from 3.1 percent (yoy) in November, according to World Bank’s Armenia Monthly Economic Update – January 2026.
The average inflation reached 3.3 percent in 2025, compared to 0.3 percent in 2024. In 2025, inflation was driven by food and non-alcoholic beverages at 5 percent (yoy), compared to 2 percent (yoy) deflation a year before.
Another top driver was transport, which grew by 4.8 percent (yoy), due to an increase in public transport prices in 2025. The Central Bank of Armenia reduced its key policy rate by 25 basis points (bps) to 6.50 percent in December, marking the second cut of the year since February, and bringing rates to their lowest since mid2021.
Armenia’s state budget for 2025 anticipates an inflation rate of 3% (±1%). Meanwhile, the World Bank forecasts that inflation in Armenia will reach 3.5% in 2025, the IMF estimates it at 3.3%, the ADB predicts 2.5%, and the EDB expects it to be 3.1%.-0-
