WB: Lira, ruble depreciation curbed external inflationary pressure on prices in Azerbaijan

During January-June 2023, the depreciation of the national currencies of Türkiye and Russia, which are Azerbaijan’s key trading partners (in terms of imports), made it possible to contain external inflationary pressure on consumer prices in the country, Report informs referring to the monthly economic bulletin of the World Bank (WB) on Azerbaijan.

According to the bulletin, inflation in Azerbaijan slowed down even more in June, reaching 10.7% in annual terms in the first half of the year.

In July, deflation was 0.9% compared to June, due to a 2.1% fall in food prices caused by seasonal factors.

Annual food inflation slowed to 11.7% in June from 12.7% in May. During the month, the agricultural producer price index fell by 3.6%, which helped reduce food inflation. Annual inflation of non-food products and services decreased to 10.6% and 10%, respectively.

In the second quarter, housing prices rose by 1.2% (year-on-year) and in the first half were up 9.9% compared to the same period in 2022.