Annual inflation in Azerbaijan remains within target range

Annual inflation in Azerbaijan is currently within the target band and continues to follow the projected trajectory under the baseline scenario, Report informs, citing the Central Bank of Azerbaijan (CBA).

According to CBA, forecasts for inflation to remain within target this year and next remain unchanged. However, external cost factors are showing signs of intensification.

Since the last meeting, shifts in the global economic environment have increased the likelihood of rising external inflation risks. The CBA noted that higher global food and fertilizer prices, rising transport and logistics costs, imported inflation from trading partners, and slower appreciation of the nominal effective exchange rate could all amplify external risk factors.

"These developments are being thoroughly analyzed to determine their sustainability. Domestically, under current fiscal and monetary policy conditions, the probability of excessive aggregate demand expansion remains low," the CBA stated.