According to the updated forecasts of the Central Bank of Azerbaijan (CBA), annual inflation in Azerbaijan is expected to be 5.5% in 2026 and 4% in 2027, Report informs, referring to the CBA.
"Annual inflation continues to remain within the target range. Inflation has been falling over the recent two months. In December 2025, 12-month inflation stood at 5.2%, while annual price increases were 6.4% for food products, alcoholic beverages, and tobacco products, 5.7% for paid services, and 2.5% for non-food items. Annual core inflation stood at 4.8% in December 2025, indicating that the persistent component of inflation is close to the target. Actual inflation was mainly driven by external and domestic cost factors.
Under the baseline scenario, annual inflation is forecasted to remain within the target band by the end of 2026 and in 2027. According to February 2026 forecasts, under the baseline scenario annual inflation is expected to stand at 5.5% in 2026 and 4.0% in 2027. The inflation forecast for 2026 has been revised down," the CBA stated.
Meanwhile, in October 2025, the CBA had announced that annual inflation would be 5.7% in 2026.