Fitch Solutions lowers its 2026 inflation expectations for Azerbaijan

International analytical company Fitch Solutions forecasts average annual inflation in Azerbaijan at 5% in 2026 (previously projected at 5.5%), compared to 5.6% in 2025, Report informs citing the company.

At the same time, the company's analysts believe that risks remain tilted to the upside due to geopolitical tensions and supply chain disruptions, particularly those related to sanctions affecting food exports from Russia.

Azerbaijan continues to import between 20% and 30% of its grain, dairy, and meat products from Russia, making the country sensitive to increased transportation and transaction costs, the company states.