BAKU, Azerbaijan, May 3. The inflation rate in Azerbaijan in 2022 is projected at 11.7 percent, with additional 250 basis points policy interest rate increase by year-end, Trend reports, citing the data from Fitch Ratings.
According to the report, in the first quarter of 2022, the inflation rate in Azerbaijan increased to 12.2 percent, compared to 11 percent over the fourth quarter of 2021.
As Fitch forecasts, food prices, which increased by 16.8 percent year-on-year in March, will be further impacted due to lower imports from Russia and Ukraine.
“Easing global commodity prices, fading supply chain disruptions, and the lagged effect of real effective exchange rate appreciation will help bring inflation down to a projected average of 7.2 percent in 2023, but still above the 'BB' median of 3.8 percent,” Fitch said.
Meanwhile, Fitch has affirmed Azerbaijan’s Long-Term Foreign-Currency Issuer Default Rating (IDR) at 'BB+' with a Stable Outlook.
“The Stable Outlook balances the benefit of high energy prices in further boosting Azerbaijan's external and public finances,” Fitch said.
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