Monetary factors continue to have restraining effect on inflation in Azerbaijan

Since the last meeting devoted to monetary policy, there have been no significant changes in the actual level of inflation, Report informs referring to the statement of the Central Bank of Azerbaijan (CBA).

The CBA kept its inflation forecast below the current level by the end of the year, taking into account the impact of lower world food prices and supply and logistics costs in recent months. In 2023, inflation is projected to decrease.

Monetary factors continue to have a restraining effect on inflation. A surplus balance of payments creates conditions for the growth of supply in the foreign exchange market. Since the last meeting, the growth in the rate of strengthening of the nominal effective rate of the manat has become one of the deterrent factors for inflation.