Inflation in Armenia Accelerated to 3.8% in January 2026

According to the Central Bank of Armenia, inflation accelerated at the beginning of 2026. At the end of January, the twelve-month inflation rate stood at 3.8%, increasing from 3.3% in December 2025.

The primary driver of this growth was food prices, which rose by 5.9% year-on-year. Core inflation reached 4.3%, indicating steady domestic inflationary pressure rather than merely seasonal fluctuations.

The current inflation level remains within the CBA's target range of 3% ± 1 p.p. (percentage point), though it has approached the upper bound. The refinancing rate is maintained at 6.5%.

Banks, investors, and large businesses are navigating based on the January inflation rise to 3.8%, as well as the higher core inflation rate of 4.3%, expecting these figures to influence future decisions of the Central Bank of the Republic of Armenia. This implies that during interest rate policy discussions in the spring, the regulator will rely on fresh early-2026 indicators and may not rush to cut the rate, maintaining a more cautious approach.