The research considers the key indicators describing the socio-economic situation in the Republic of Armenia. The authors analyzed the microeconomic environment of the last few years․ To gain insight into and evaluate the effect of price increases on the social state of the population, the authors analyzed changes in the consumer price index (CPI) in the Republic of Armenia over recent years for the main consumer groups. These changes are then compared with variations in real salaries in Armenia. The authors also studied the CPI in the Republic of Armenia according to the groups of goods and services and presented an analysis of the results. The authors studied the price changes in various food products in Armenia from 2018 to 2022. Additionally, they examined GDP per capita from 2019 to 2022, the dynamics of poverty level indices, and the nominal poverty lines and their changes from 2018 to 2021. The authors also analyzed the factors affecting the poverty level and introduced new alternative methods for poverty-level assessment. This analysis helps understand why the implementation of a poverty alleviation strategy has enabled the development of capacities to meet the needs of the poor and foster reproductive and social progress.