Deputy Chairman of State Statistical Committee: 3% inflation stimulates economic growth - EXCLUSIVE

"In spite of the rise in salaries beginning on March 1, we have not observed any price hike in the consumption market," Deputy Chairman of the State Statistics Committee Rauf Salimov told Report.

According to him, currently, the inflation is 2.3-2.4%: "I think there will not be any price hike as a result of the measures for control over consumption market, prevention of artificial price hike, organization of agriculture fairs, improvement of competitiveness. For the present, the inflation is lower than forecasted."

He also noted that the low inflation can unlikely lead to deflation: "According to the economic theory, 2.5-35 inflation is acceptable, it even stimulates the economic growth. Higher inflation damages economy. In case of deflation, condition of the population weakens. For example, there has been deflation in Japan instead of inflation for some years. Japanese yen is strengthening. They cannot prevent it and export opportunities are affected by this. But in Azerbaijan, the inflation is normal and stimulates the production. Neither citizens, no economy feel the 2% inflation."