Data released by the Armenian government’s Statistical Committee shows that they were up by nearly 13 percent year on year in March, translating into an overall inflation rate of 7.4 percent.
Annual inflation reached 7.7 percent in December, well above a 4 percent target set by the government and the Central Bank of Armenia (CBA) for 2021. A sharp rise in food prices, which reflects a global trend, was the key factor behind the increased cost of living in the country.
In an effort to curb rising inflation, the CBA has raised its benchmark interest rate for nine times since December 2020.
The bank most recently hiked the rate in mid-March, citing fallout from Western economic sanctions imposed on Russia over its invasion of Ukraine.
The government likewise predicted that the escalating conflict further push up the cost of food staples in Armenia. The South Caucasus country imports a large part of its wheat, cooking oil and other basic foodstuffs from Russia.
Also contributing to higher-than-projected inflation are recent increases in the prices of electricity and natural gas approved by utility regulators.