Producer Prices in Armenia on the Rise: Inflation Exceeds 3%

According to Central Bank data, in the fourth quarter of 2025, Armenia's Producer Price Index (PPI) moved into positive territory, exceeding 3% year-on-year following a period of decline. This marks a trend reversal and the beginning of rising production costs at the corporate level.

The AFM team has observed that producer price growth is already outpacing consumer price inflation. This gap signals potential pressure on corporate profits in the coming quarters.

What This Means

If companies are unable to pass rising costs onto end-consumers, their profit margins will contract.

Should businesses shift these costs to buyers, it could lead to an acceleration of consumer inflation in 2026.

PPI growth often serves as a leading indicator, showing that inflationary pressure is building at the production stage and may reach the end-consumer later.

According to the AFM team's assessment, current PPI dynamics are a critical signal for both businesses and regulators. In the coming months, the key challenge will be balancing corporate margin preservation with inflation control.