Fitch forecasts 5.3% inflation in Azerbaijan for 2025

Fitch Ratings projects that Azerbaijan's average annual inflation will reach 5.3% in 2025 before declining to 4.6% in 2026, Report informs, citing the agency.

These values remain within the Central Bank's target range (4% ± 2 percentage points), Fitch notes in its assessment of Azerbaijan's economic outlook.

The agency's analysts do not anticipate any reduction in Azerbaijan's Central Bank policy rate until 2026, reflecting persistent inflationary risks and the cautious monetary policy stance maintained by authorities.

Year-on-year inflation in the country reached 5.9% during January-May 2025.

This is partially attributed to the low base effect from the previous year, as well as the minimum wage increase implemented in the first quarter of 2025, the agency says.