WB expects inflation to remain within target range in Azerbaijan

The Central Bank of Azerbaijan’s (CBA) confidence index for industry remained flat in January when compared to December and deteriorated for retail trade and services, Report informs, referring to the February issue of the Azerbaijan Monthly Economic Update, prepared by the World Bank (WB).

According to the survey, annual inflation increased slightly to 2.7 percent year-on-year in December but remained within the lower bound of the CBA target range of 4±2 percent. Food prices increased by 1.8 percent month-on-month in December while non-food and services prices were flat.

"A tariff rise for fuels (gasoline by 11 percent, diesel by 33 percent) announced on January 6 and doubling of water tariffs on January 30 are expected to translate to higher prices going forward but inflation is likely to remain within the CBA target range," the WB said.

In January this year, the consumer price index in Azerbaijan compared to the same period last year increased by 3.3 percent, including for food products, drinks, and tobacco products - 4.6 percent, non-food products - 3.5 percent, tariffs for paid services to the population - 1.3 percent.