Inflation in Azerbaijan to slow down in 2024-2025, IMF forecasts

The International Monetary Fund (IMF) forecasts the average annual inflation in Azerbaijan to be 2.1% in 2024, 4.8% in 2025, and 4% in 2029, Report informs, citing the October issue of the IMF’s World Economic Outlook.

In April, the IMF projected inflation in Azerbaijan to be 3.5% in 2024 and 5% in 2025. The forecast for 2029 remains at 4%.

For the Middle East and Central Asia region, inflation is projected to be 12.7% in 2024 and 9.3% in 2025.

In 2023, annual inflation in Azerbaijan was 2.1%, approaching the lower limit of the Central Bank's target range (4% ± 2%), while the average annual inflation was 8.8%. The IMF projects annual inflation to be 4.6% in 2024 and 5% in 2025.

According to the State Statistical Committee of Azerbaijan, the average annual inflation for January-September 2024 was 1.5%. Prices of food products, beverages, and tobacco products increased by 0.4%, non-food products by 1.4%, and paid services to the population by 3.3%.

The Ministry of Economy forecasts average annual inflation in Azerbaijan to be 2.7% in 2024, 4.6% in 2025, 4% in 2026, and 3.8% in 2027-2028.