Despite the observed decrease in the rate of inflation, the high volatility of the external environment, and the risk of excessive expansion of aggregate demand can be considered as factors that increase inflation, the Central Bank of Azerbaijan said.
In the context of the ongoing geopolitical conflict, the disruption of the international logistics chain, and the expectations that inflation will remain above the target levels for a long time in several countries have the potential to affect inflationary processes through various channels. In general, the strengthening of inflation-reducing factors increases the probability that annual inflation will approach the target by the end of the year and by 2024," the statement said.