Azerbaijan reveals impact of various factors on inflation

The price increases in countries that are trade partners with Azerbaijan have had an upward impact of 3.36 percentage points on price growth within the country this year, according to Taleh Kazimov, Governor of the Central Bank of Azerbaijan (CBA), Report informs.

"As for domestic factors, the strengthening of the manat's real effective exchange rate had a reducing effect of 0.52 percentage points on inflation, while the increase in government and household consumption had an upward effect of 1.61 percentage points, and the rise in prices of agricultural products had an upward effect of 4.6 percentage points," he said during a press conference dedicated to the decision of the CBA regarding the parameters of the interest rate corridor.

According to the CBA's updated forecasts, annual inflation is expected to be around 5.7% in 2025 and around 5.3% in 2026.

Meanwhile, in April 2025, the CBA announced that annual inflation would be around 5.3% in 2025 and around 4.3% in 2026.