YEREVAN, May 19. /ARKA/. Inflation in Armenia continued to rise in April amid tensions due to the Middle East conflict and in supply chains, according to the World Bank’s “Armenia Monthly Economic Update – May 2026.”
“In April, inflation rose to 5.3% year-on-year and 1.3% month-on-month. This was driven by a 9.5% (y-o-y) increase in food and soft beverage prices, accounting for 70.3% of annual inflation,” the study states.
It is noted that the price of alcoholic beverages and healthcare services increased by 7.7% and 4.2% year-on-year, respectively, while inflation in the transport sector remained moderate at 2% year-on-year, driven by a 7% decline in gasoline prices following the opening of fuel imports from Azerbaijan.
“At its meeting on May 5, 2026, the Central Bank of Armenia decided to keep the key interest rate unchanged at 6.5%, despite accelerating inflation amid heightened uncertainty,” the report states.
The 2026 state budget of Armenia projects inflation at 3% (±1%). According to the Central Bank’s monetary policy report for the first quarter of this year, inflation in Armenia is expected to be 4.4-3.3% by the end of 2026, depending on scenario (A-B), the forecast for 2027 is 3.5-3.1%, and for 2028 – 3.2-3.1%.
