Central Bank of Azerbaijan announces 3-year annual inflation forecast

The Central Bank of Azerbaijan (CBA) forecasts that the annual inflation in the country will be 4.3% this year, 5.3% next year, and 3.4% in 2025, Report informs referring to the bank.

“In several consecutive forecast updates this year, inflation forecasts for 2024 and 2025 have been within the target range,” CBA said in a statement.

“In general, the strengthening of reducing factors in the inflationary environment and the stabilization of inflationary expectations give grounds for predicting the formation of annual inflation within the target at the end of this year and next year. According to the October forecasts, inflation is expected to be in the target range in the medium term. Further decisions of the CBA regarding monetary policy will be made taking into account the comparison of the projected inflation with the target and the updated macroeconomic forecasts. If the risks related to the external and internal environment mentioned above do not materialize and the pressures on the strengthening of the manat do not subside, the possibility of easing the monetary policy in stages will be considered,” reads the statement.