The USD/AMD exchange rate increased in March 2022, in April 2022 it stabilized at a lower rate. The RUB/AMD exchange rate fell sharply in March 2022, but stabilized in April 2022 at a higher rate.
Armenia faces rising food and non-food prices. Food inflation was 14.5% in Armenia in April 2022 compared to April 2021, which negatively impacted food access, especially for vulnerable households. The change from March 2022 to April 2022 is 4.1%.
In April 2022, price increases of some commodities most frequently consumed by Armenians were observed compared to April 2021. The increase in food and non-food prices combined with other factors, such as the increase prices of agricultural products, services, etc. affect the population in Armenia, especially the most vulnerable households, reducing their purchasing power.
The highest food price inflation rates were observed in Gegharkunik (16%), Kotayk (15%), Ararat (15%) and Tavush (15%) regions in April 2022 compared to April 2021. A comparatively lower food price inflation rate was observed. in Vayots Dzor (12%) for the same period.
An increase in fuel prices (diesel by 32% and gasoline by 17%) was observed in April 2022 compared to April 2021.
Factors influencing price increases in Armenia remain rising prices of goods from importing countries, transportation costs, including global fuel prices, as well as domestic inflation, availability of irrigation water, the depreciation of the Armenian dram.
Climate change, especially rainfall volatility, affects agricultural production in Armenia. The highest precipitation levels are observed in Syunik and Vayots Dzor.