"Past" daily writes that Armenia's economy is facing the acceleration of inflation with social and political consequences. The Central Bank notes that inflation may accelerate in the near future due to the increase in energy prices, disruptions in supply chains and changes in trade channels.
In the first quarter of 2026, the annual inflation reached 4.5 percent in March, the base - 4.7 percent, exceeding the target of 3 percent with a deviation of ±1 point. The factors are the increase in the price of energy carriers, logistics problems, the situation around Iran, the tension in the Middle East (also prices of fertilizers, wheat, rice, oil, sugar).
Internal impacts include supply constraints, labor shortages, infrastructure problems, bearish agricultural sentiment and excess demand. Inflation hits low-income and middle-class people in particular, raises business costs, especially for SMEs, and challenges government budgets.
