Inflation in Armenia accelerated again in June, placing renewed pressure on households as the prices of food and other essential goods continued to rise faster than many citizens’ incomes.
According to official statistics reported by 168.am, Armenia’s 12-month inflation rate reached 5.1 percent in June, up from 4.2 percent in May. The increase reversed the temporary slowdown recorded during the previous month and placed inflation 1.1 percentage points above the upper limit of the Central Bank’s target range.
Food prices rose by 8.6 percent compared with June of last year, creating a particularly heavy burden for pensioners, low-income families and others whose earnings have remained stagnant or increased only modestly.
Fruit prices increased by nearly 17 percent, while vegetables also became considerably more expensive. The report attributed much of the increase not to stronger exports, as government officials have suggested, but to reduced agricultural production and smaller harvests.
Apricot production, for example, reportedly declined significantly. Although exports also fell, the limited domestic supply kept prices high in the Armenian market. The same pattern affected several other agricultural products.
Meat prices rose by an average of 12.5 percent over the year. Beef became more than 23 percent more expensive, while lamb prices increased by 16.4 percent. Pork rose by nearly 8 percent and chicken by 5.2 percent.
Egg prices recorded one of the sharpest increases, rising by nearly 30 percent in one year. Dairy products also became more expensive, with sour cream rising 9.3 percent, milk 8.3 percent, cottage cheese 7.4 percent and cheese 7.2 percent.
Sunflower oil and cereals increased by more than 10 percent, while buckwheat prices rose by 9.2 percent.
The increases have substantially weakened the effect of recent pension and social-benefit adjustments. A 10,000-dram pension increase announced before the parliamentary elections has already been partly eroded by the 8.6 percent rise in food prices.
The government also increased certain social benefits before the election, but changes introduced afterward reportedly resulted in tens of thousands of recipients losing assistance. Those families are now facing rapidly increasing costs without the financial support they previously received.
The decline in livestock numbers and domestic meat production has also contributed to rising prices. The increases therefore appear to reflect structural problems in Armenia’s agricultural sector rather than stronger consumer demand.
Despite inflation exceeding its target range, the Central Bank has not raised its key interest rate or introduced other significant measures intended to slow price growth.
The impact is being felt most heavily by citizens who spend a large share of their income on food and basic necessities. While the government continues to present favorable economic indicators, the rising cost of everyday goods is leaving many Armenian households with less purchasing power and increasingly strained family budgets.
