Central Bank of Azerbaijan assesses impact of climate change on inflation

Climate change may affect overall inflation in Azerbaijan by 0.5-1 percentage points by 2035, Report informs, citing the Central Bank of Azerbaijan.

According to the bank, the greatest pressure is expected on food inflation - from 1.5 to 2 percentage points.

The bank emphasizes that climate change and the transition to a greener economy are creating new inflation risks worldwide.

In 2024, the CBA conducted a comprehensive study of the impact of climate factors on macroeconomic indicators and monetary policy, examining international experience and strategies of leading central banks.