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Inflation in Armenia remains at a low, manageable level

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10.09.2019
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Inflation in Armenia remains at a low, manageable level, and most importantly, with low volatility.  Prime Minister of Armenia Nikol Pashinyan expressed this opinion on his Facebook page.

Thus, according to Pashinyan, in January-July the average inflation  amounted to 1.9%, and the 12-month rate reached 1.7%. "This has been  ensured by a consistent increase in confidence in the national  currency recently, which is also reflected in a reduction in  inflationary expectations on the part of households," the Prime  Minister wrote.

As the head of government indicated, according to a survey conducted  by the Central Bank, almost all respondents (more than 95% according  to the second quarter of 2019) expect that price stability will also  continue in the future (in the context of 1-5 years), which very  important for macroeconomic stability.  "This means that households  and organizations can plan their economic activities much better, as  well as their savings and investments," the Prime Minister said.

According to the head of the cabinet, the increase in confidence in  the national currency was also reflected in the consistent reduction  in the level of dollarization. Over the past year, the indicator  declined by about 4 percentage points, reaching 48.6% in July (the  ratio of foreign currency deposits of residents to total deposits of  residents). "This means that the majority of Armenian citizens -  51.4% prefer to keep their money in banks in drams, which is also  very important, since it reduces the currency risks of business  entities and helps to further improve the stability of the financial  system," Pashinyan noted. ''By the way, I did the same, recently I  sold my Hyundai car and keep the money in the bank in drams,'' the  prime minister said.

To recall, according to the Law "On the State Budget of Armenia for  2019", GDP in Armenia is expected to be at the level of 4.9%, and  inflation - 2.7%.

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