WB reveals inflation forecast in Azerbaijan until 2027

According to the World Bank (WB) forecasts, annual inflation in Azerbaijan will be 3% in 2024, 3.5% in 2025 and 4% in 2026, reads an April WB report on the economies of Europe and Central Asia, “Unleashing the Power of the Private Sector,” Report informs.

“Inflation is projected to remain low, averaging 2.2 percent in the medium term, owing to moderate domestic demand growth and stabilization in global food prices,” the WB noted.

Annual inflation in 2023 reached 2.1%, approaching the lower limit of the Central Bank of Azerbaijan’s target inflation range of 4 +/-2%.

Since October 2023, the CBA has cut the discount rate four times, by a total of 125 basis points, bringing it to 7.5% at the end of March 2024.

According to the State Statistics Committee, the consumer price index in Azerbaijan in January-March of this year amounted to 101% compared to the same period last year, including 99.7% for food, drinks and tobacco products, 101.4% for non-food products, 102.5% for paid services to the population.

In Azerbaijan, inflation was recorded at 0.2% in March 2024 compared to 0.6% in February, and for the year it amounted to 0.4%.

The Azerbaijani government forecasts average annual inflation at 5.3% for 2024.

In 2023, the average annual inflation in Azerbaijan was 8.8%.