S&P lowers forecast for average annual inflation in Azerbaijan

The international rating agency S&P Global Ratings has lowered its forecast for average annual inflation in Azerbaijan to 3% in 2024 compared to the April forecast of 3.5%, according to the S&P Global Ratings report on the affirmation of Azerbaijan’s sovereign credit ratings, Report informs.

These are the rating agency’s expectations for 2025-2027.

According to Azerbaijan’s State Statistics Committee, in January-April of this year the consumer price index amounted to 100.7% compared to the same period in 2023, including for food products, drinks and tobacco products - 99.3%, for non-food products - 101.3%, paid services to the population - 102.4%.

In Azerbaijan, in April 2024, deflation was recorded at 0.1% compared to March, and for the year inflation was 0.4%.

The Azerbaijani government forecasts average annual inflation at 5.3% for 2024. In 2023, the average annual inflation in Azerbaijan was 8.8%.

According to forecasts of the International Monetary Fund (IMF), average annual inflation in Azerbaijan in 2024 will be 3.5%, in 2025 - 5% and in 2029 - 4%. The World Bank expects inflation in Azerbaijan at 3% in 2024, 3.5% in 2025 and 4% in 2026. According to forecasts of the Asian Development Bank (ADB), average annual inflation in Azerbaijan in 2024 will be 5.5%, and in 2025 it will increase to 6.5%.

The Dutch ING Group predicts average annual inflation in Azerbaijan in 2024 at 1.6%, in 2025 - 3.8% and in 2026 - 4.2%.