Azerbaijan discloses impact of various factors on inflation

Price increases in countries that are trade partners with Azerbaijan could have an upward impact of 2.57 percentage points on domestic price growth for 2025, and 1.74 percentage points for 2026, Chairman of the Central Bank of Azerbaijan (CBA), Taleh Kazimov, stated during a press conference dedicated to the decision of the CBA regarding the parameters of the interest rate corridor, Report informs.

"As for domestic factors, consumption by the government and households is expected to have an upward impact of 1.5 percentage points on inflation this year, and 2 percentage points next year," he noted.

The chairman added that state budget expenditures this year could have an upward impact of 0.43 percentage points on inflation.

According to the CBA's updated forecasts, annual inflation is expected to be around 5.3% in 2025 and 4.3% in 2026.

In January 2025, the CBA announced that annual inflation would be around 5.5% in 2025 and 3.8% in 2026.