YEREVAN, June 17. /ARKA/. Core inflation in Armenia rose to 5% (y/y) in May, exceeding the headline inflation rate and continuing its upward trend, according to the World Bank’s “Armenia Monthly Economic Update – June 2026.”
“This indicates that recent fuel price dynamics are not the main driver of inflation, and that long-term price pressures – excluding food and energy prices – remain strong and persistent,” the study states.
Twelve-month inflation in Armenia in May was 4.2% (y/y) compared to 5.3% (y/y) in April.
World Bank analysts note that the main factor driving the decline in inflation in Armenia in May was the slowdown in food and non-alcoholic beverage prices, which fell from 9.5% in April to 6.4% in May.
“Nevertheless, this remains the main driver of inflation, accounting for 60% of the total,” the report states.
Armenia’s 2026 state budget 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 range from 4.4% to 3.3% by the end of 2026, depending on scenarios (A-B), with the forecast for 2027 being 3.5% to 3.1%, and for 2028, 3.2% to 3.1%.
