S&P: "Inflation in Azerbaijan will subside to 3% by 2025"

The inflation will average 6.5% in 2022 before gradually subsiding to 3% through 2025, S&P Global Ratings said in a statement, Report informs.

According to the statement, consumer prices will rise to 4.5% in 2023, and 3% in 2024-2025.

"Azerbaijan's inflation exceeded our previous forecasts, reaching an annual average of 6.7% in 2021; this was the highest level since 2016-2017 when prices rose significantly following the 2015 manat devaluation. The current upward price pressures, similar to those of other countries, are driven by the effects of post-pandemic reopening, food price inflation, and some administrative price increases, including for domestic energy," the statement said.

The Azerbaijani government forecasts inflation at 3.6% in 2022.