Arif Veliyev, the Chairman of the State Statistics Committee of Azerbaijan, stated at a news conference on 26 October that the State Statistics Committee expects inflation to reach 8.5% in 2006, Trend reports. This will comprise 286,000 manats per capita per month in Azerbaijan amid an inflation rate of 10%.
As a result of 2005, the consumer prices and service tariffs rose 9.6%. Over 9 months of 2006, the growth pace of inflation was 7.3% compared to the same period in 2005. There was a rise in foodstuff prices 0.3%, non-food prices 4.8% and service tariffs 2.4%. In September the prices of consumer goods and service tariffs increased 10.3% compared to last year and 6.2% - compared to December.
Veliyev said that, as a developing country, inflation is inevitable in Azerbaijan, a result of consumer demand. Furthermore, inflation is caused by a rise in community income on the level of 24-26% and wages (19.9%). A rise of 1-2% inflation is observed in developed countries where the income exceeds 3-5% whereas in Azerbaijan wages and income have increased at a rapid rate with the transition to market economy.