This year, inflation in Azerbaijan was impacted by a number of supply and demand factors, Report informs referring to the Central Bank.
The impact of foreign cost factors on inflation dynamics was significant.
In particular, inflation in trading partner countries is estimated to have driven domestic price growth by 2.87 percentage points last month. The nominal effective exchange rate of the national currency also had an impact, increasing inflation by an additional 0.38 percentage points.
During the reporting period, domestic supply factors (agricultural producer prices, etc.) and demand factors (household consumption, government consumption, etc.) also had an overall upward effect on inflation.
The Central Bank expects annual inflation at about 6% in 2025 and approximately 5.7% in 2026.