According to the RA Statistical Committee, in June 2025, compared to June 2024, inflation in the Republic of Armenia was recorded at 3.9%. Prices for food and non-alcoholic beverages increased by 6.2%.
In particular, the prices of bread rose by 3.9%, butter by 14%, pasta by 5.3%, meat products by 1.6%, fruits by 3.7%, vegetables by 25%, and potatoes by 67.3%.
At the same time, the prices of some goods have decreased, while the prices of cheese and cottage cheese increased by 1.5%, and eggs by 6.2%.
Such inflationary trends, especially in relation to essential goods, further worsen the situation of socially vulnerable groups.
According to the report “Armenia’s Social Picture and Poverty, 2024” published by the RA Statistical Committee, in 2023, 42.9% of average monthly household spending per capita was directed to food, and 32.8% to services.
The share of non-food products was 19.4%, cigarettes 4.5%, and alcoholic beverages 0.4%. These figures indicate that most of the population’s income is spent on basic necessities, while the amounts allocated to education, entertainment, or savings remain limited.
When almost half of the population’s income is spent on food, even minor inflation has a direct impact on their quality of life.
In January–June 2025, the average monthly nominal salary in the Republic of Armenia amounted to 294,621 drams, which is 5.6% higher than in the same period of the previous year. In June 2025, it reached 297,624 drams.
The salary level in some sectors is significantly lower than the national average. In particular, the average salary amounted to 148,014 drams in accommodation and catering, 150,351 drams in other services, 159,520 drams in culture and art, and 166,118 drams in education.
The lowest average monthly nominal salary was registered in the Gegharkunik region at 146,355 drams, while the highest was in the Syunik region at 306,283 drams. In Yerevan, it amounted to 298,879 drams.
Although an increase in the average monthly nominal salary was recorded in Armenia during January–June 2025, rising prices for goods and services continue to keep the real incomes of workers at a low level.
In 2023, the poverty rate in the Republic of Armenia was estimated at 23.7%, which is 1.1 percentage points lower than in 2022. The extreme poverty rate stood at 1.1%, a decrease of 0.1 percentage points. The poverty rate among employees was 19.4%.
The prevalence of poverty varies by locality: it was 21.5% in urban areas and 27.0% in rural areas. In Yerevan, the poverty rate stood at 17.9%.
The highest poverty rate was recorded in the Shirak region at 43.1%, while the lowest was in the Syunik region at 7.0%.
In the second quarter of 2025, the cost of the minimum consumer basket, calculated according to the methodology of the Ministry of Health of the Republic of Armenia, amounted to 81,680.9 drams, which is higher than the minimum wage.
According to the World Bank methodology, the cost of the minimum consumer basket was 64,713.9 drams.
The values of minimum consumer baskets have not been officially established in the Republic of Armenia by any law or other legal act.
To reduce poverty, improve the standard of living of workers and their families, and ensure decent work in the country, it is necessary to officially establish the cost of the minimum consumer basket. Additionally, a wage indexation procedure should be adopted, as defined by Article 182 of the RA Labor Code, which was adopted in 2004.