Azeri Government communicated the IMF its intention to keep one-digit inflation by the totals of 2006 and achieve this goal on practice, Trend reports quoting chairman of the board of National Bank of Azerbaijan Elman Rustamov that spoke April 21 on the conference.
Rustamov said NBA-estimated base inflation made 2% in Q1 and consumers inflation made 4.6%. Greater part of base inflation was formed as a result of non-monetary factors (80.7%), due to liberalization of prices for energy carriers, rise of price for sugar and influence to seasonal factors. Low influence of monetary factors was conditioned by 6.7.%-growth of cash mass in reported period.
To keep inflation on certain level, National Bank is continuing a flexible rate policy. The main factor influencing manat rate is rise of oil prices in the world market, though the countrys revenues from oil are accounted as well. 60% of budget incomes today are constituted by currency from oil sales.
The currency inflow resulted in manat rate strengthening by 1.6%. Rustamov considers outstanding the fact of 1.1%-reduction of manat rate relatively to those of Azerbaijans basic foreign partners currencies.