Armenia’s inflation reaches 4.3 per cent as Central Bank maintains tighter monetary policy

YEREVAN — Armenia’s annual inflation rate reached 4.3 per cent in October 2026, remaining above the Central Bank’s 3 per cent target as monetary authorities continue efforts to contain rising prices.

Central Bank Governor Martin Galstyan addressed the National Assembly’s Standing Committee on Financial-Credit and Budgetary Affairs on November 11, outlining the country’s inflationary outlook and recent monetary-policy decisions.

Galstyan said the Central Bank had increased its key interest rate at each of its two most recent policy meetings in response to rising inflationary pressures.

On November 3, the bank raised its refinancing rate by 0.25 percentage points to 7 per cent.

He explained that risks of further price increases had become more significant than factors that could exert downward pressure on inflation.

According to official statistical data, consumer prices in October were 4.3 per cent higher than in October 2025 and increased by 0.3 per cent compared with September.

Food and non-alcoholic beverage prices increased by 5.6 per cent year over year, underscoring the continuing pressure on household budgets.

The figures highlight the challenge facing Armenian households as essential living costs rise faster than the Central Bank’s overall inflation target.

Higher interest rates are intended to moderate inflation, but they may also increase borrowing costs for households and businesses, making loans and investment financing more expensive.

For the government, persistent inflation presents an additional economic challenge, particularly when households face rising everyday expenses and concerns about purchasing power.

The Central Bank has indicated that it considers its current monetary policy appropriate and will continue taking steps to return inflation toward the 3 per cent target over the medium term.

The latest figures demonstrate that inflation remains an important concern for Armenia’s economy despite the tightening measures already introduced.