ArmInfo. In Armenia, the industrial producer price index increased significantly in the first half of 2026 compared to the same period in 2025, rising from 102.1% to 108.9%. This was observed against the backdrop of improved annual performance in the industrial sector, which rebounded from a 12.1% contraction to a 10.8% growth rate, reaching AMD 1.5 trillion ($4.1 billion). This is according to preliminary data from the RA Statistics Committee. A similar upward trend in the industrial PPI was recorded in June 2026 compared to June 2025, climbing from 102.5% to 108.8%. Over this period, industrial performance also shifted into positive territory, registering a 4% growth rate compared to a 1.2% decline a year prior.
It is worth noting that inflation was recorded in the Armenian consumer market during these periods. Specifically, in H1 2026, compared to the H1 in 2025, inflation was 4.6%, and in June 2026 compared to June 2025, inflation was 5.1%, compared to 3.1% and 3.9%, respectively, in the same periods a year ago. Moreover, consumer price inflation was primarily driven by rising food prices: by 7.5% in the first half of 2026 compared to the same period in 2025, and by 8.5% in June 2026 compared to June 2025, a trend that was also observed during the same periods a year earlier, when food prices increased by 5.2% and 6.2%, respectively. At the same time, service costs continued to climb, registering annual increases of 2.7% in H1 2026 and 2.5% in June 2026, down slightly from 2.9% and 3.5% in the corresponding periods of the previous year.
Note, economic growth accelerated in H1 2026 from an annual rate of 6.3% to 7.9%, while moderating in June 2026 compared to June 2025 from 8.6% to 7.7%. At the same time, a weakening of the annual decline in foreign trade turnover is observed: in H1 2026 - from 45% to 0.1% per annum, and in June 2026 compared to June 2025 - from 16.6% to 3.3%. In particular, in H1 2026, the decline in exports slowed down from 52.8% to 6.7% per annum with the import dynamics exiting from a 38.6% decline to a 4% growth, and in June 2026 compared to June 2025, an acceleration of the export decline was observed from 15.9% to 20.5%. The import dynamics shifted from a 17.1% decline to an 8.6% growth. (The average exchange rate for the dram in the first half of 2026 was 374.32 AMD/USD, compared to 391.31 AMD/USD a year ago).
