Armenia’s inflation remains above target in Q2 2026

In the second quarter of 2026, 12-month inflation continued to run above target, reaching 5.1% in June, while 12-month core inflation stood at 4.9%, Deputy Governor of the Central Bank Hovhannes Khachatryan said at a press briefing.

“Amid geopolitical uncertainty, high energy prices, and a slowdown in the global economy, inflationary risks remain elevated,” Khachatryan said, adding that the likelihood of major central banks maintaining high interest rates for an extended period or raising them further has increased.

“In Q2 2026, economic activity in Armenia remained strong, supported largely by growth in construction and services. At the same time, difficulties in certain export markets have increased the risks of lower incomes in the Armenian economy and excess supply in some goods markets, which could have disinflationary effects,” he said.

Earlier today, the Central Bank announced that it would keep the policy rate unchanged at 6.50%.

Khachatryan added that the Central Bank’s Board will continue to monitor economic development scenarios and stands ready to take appropriate measures to ensure the 3% inflation target is achieved over the medium term and to maintain price stability.