YEREVAN. – Inflation in Armenia is currently maintained at a low, manageable level and, importantly, it is less fluctuating. Prime Minister Nikol Pashinyan noted this in a Facebook post.

“In January-July 2019, the average inflation was 1.9 percent, and the 12-month inflation in July was 1.7 percent,” he added. “All of this ensures the continued increase in confidence in the [Armenian] national currency [the dram] in recent times, which is also reflected in the declining inflation expectations of households.

“According to the surveys conducted by the CB [Central Bank of Armenia], currently virtually all respondents (more than 95 percent, as of the data for the second quarter of 2019) expect that price stability [in Armenia] will be maintained also in the future (with a horizon of 1-5 years), which is very important for macroeconomic stability.

“This means that households and organizations [in Armenia] can much better plan their economic activities and the savings and investments being made.

“The growth in confidence toward the national currency has also been reflected in the continued decline in the level of dollarization, which has decreased (by about 4 percentage points) over the last year, reaching to 48.6 percent in July (the ratio of residents’ foreign currency deposits to residents’ general deposits).

“This means that the majority of Armenia residents, 51.4 percent, prefer to keep their money in banks in drams, which is also very important, since it reduces the currency risks of businesses and contributes to the further improvement of the stability of the financial system. By the way, I have done the same. I recently sold my Hyundai and am keeping the money in the bank in drams.”