S&P expects inflation in Azerbaijan to slow down to 5% in 2025

Inflation in Azerbaijan is now forecast to average 13% in 2022 before gradually slowing to 5% through 2025, Report informs, citing the statement of the international rating agency S&P Global Ratings on the affirmation of long-term and short-term foreign and local currency sovereign credit ratings of Azerbaijan at the level of "BB+/B".

"Like most other emerging and advanced economies, Azerbaijan's inflation has continued to exceed our previous forecasts, surpassing levels exhibited over 2016-2017, when prices rose significantly following the 2015 manat devaluation. Current upward price pressures are driven by the effects of post-pandemic reopening, food price inflation, and global trends given that Azerbaijan imports a wide range of goods from abroad and is significantly affected by foreign inflation developments," S&P says.