Annual inflation in Azerbaijan remains within the target range and is tracking according to the baseline forecast trajectory, according to the Central Bank of Azerbaijan (CBA).
The Operative Information Center-OMM reported this update, citing official data from the CBA.
"The forecast that annual inflation will remain within the target range for the current and upcoming year remains unchanged. However, there is an observed activation of external cost-push factors affecting inflation," the CBA stated.
Since the previous meeting, shifts in the global economic environment have increased the probability of rising external inflation risks. In this rapidly evolving landscape, factors such as increasing global food and fertilizer prices, rising transport and logistics costs, the expansion of imported inflation from trading partners, and a slowdown in the strengthening pace of the nominal effective exchange rate could exacerbate external inflationary pressures. The CBA is conducting in-depth analyses to determine the sustainability of these factors. Regarding the domestic environment, the probability of excessive expansion of aggregate demand remains low against the backdrop of current fiscal and monetary policies.
The Central Bank of Azerbaijan plays a pivotal role in maintaining macroeconomic stability in the country. By managing monetary policy and regulating the banking sector, the CBA aims to ensure price stability, which is essential for sustainable economic growth and the purchasing power of the national currency, the manat.
