Armenia's consumer price deflation eased to 0.9% y/y in October down from 1.9% y/y a month earlier, the country's statistics agency Armstat reported on November 7.
Unlike its regional peers, Armenia has enjoyed relative monetary stability in recent years, following a 14% depreciation of the dram in December 2014. As such, inflation has remained within the government's target of 2.5% to 5.5%. Over the past seven months, however, the CPI has stayed in negative territory, prompting the central bank to ease monetary policy, cutting rates five times since February. The latest rate cut was delivered on September 27, when the bank lowered its refinancing rate by 50 basis points (bps) to 6.75%.
The price index of food products dropped the most - by 6% y/y, followed by non-food products (- by 3.6%). Meanwhile, service prices increased by 1.3% on an annual basis.
On a monthly basis, consumer prices edged up 0.5% from September, when they ticked higher by 0.1% Overall, the country's consumer price index declined by 1.5% y/y in the first ten months of the year.