YEREVAN, September 14. /ARKA/. Food and non-alcoholic beverage prices account for 57% of inflation, despite a slowdown in their growth rate from 8.6% in June to 6.4% in August, according to the World Bank’s Armenia “Monthly Economic Update – September 2026.”
“Inflation in August declined slightly, to 4.4% year-on-year from 4.5% year-on-year in July. Core inflation is close to headline inflation, reflecting strong domestic demand and a narrowing output gap,” the study states.
The WB noted that the Central Bank of Armenia, by keeping the monetary policy rate unchanged at 6.5% on August 4, reaffirmed its commitment to the 3% inflation target. Armenia’s 2026 state budget projects inflation at 3% (±1%). According to the Central Bank’s monetary policy report for the second 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 a forecast of 3.5% to 3.1% for 2027 and 3.2% to 3.1% for 2028.
