The shift in price dynamics is attributed to the deceleration of deflation in the food sector, according to the weekly macroeconomic review by analysts from the Eurasian Development Bank (EDB).
"In Armenia, prices increased for the first time after a prolonged period of disinflation that began in November last year," the study notes.
According to the review, food prices in May decreased by 2.0% year-on-year, following a 4.5% year-on-year decline in the previous month.
Analysts highlight that the key factors behind the low inflation remain the reduction in the cost of imported food due to falling prices in international markets, the strengthening of the dram, and the impact of tight monetary conditions.
According to the National Statistical Committee, consumer market inflation in Armenia in May this year was 0.3% compared to May last year, while deflation of 0.8% was recorded compared to April this year.
Economic growth in Armenia is projected at 7% in the 2024 state budget, with inflation set at 4% (±1.5%).
