BAKU, Azerbaijan, April 13. The acceleration of inflation in Azerbaijan was significantly less in March 2022 compared to other Commonwealth of Independent States (CIS) countries - primarily Russia and Belarus, Deputy Head of the Market Analysis Department of the Russian Gazprombank Gulnara Khaidarshina told Trend.
According to her, the stable exchange rate of the Azerbaijani manat, which is the "anchor" of the country's macroeconomic stability and remains at the level of 1.7 AZN/USD, despite the aggravation of geopolitical risks, still contributes to curbing inflationary risks in the Azerbaijani economy.
"The acceleration of inflation in Azerbaijan in March 2022 was primarily due to increased pro-inflationary pressure in the segment of non-food products and tariffs for services. At the same time, price growth in the food segment slowed down. We believe that the implementation of government non-monetary measures contributed to the relative stabilization of price growth in the food segment to control inflation," Khaidarshina said.
Growth of tariffs for services in Azerbaijan accelerated by 0.7 percent - up to 10 percent on an annualized basis, which was associated with an increase in the cost of services of local and international transportation by air and rail, public catering, she noted.
According to a representative of Gazprombank, inflation in Azerbaijan in the non-food segment also accelerated in March 2022, adding 0.6 percent and reaching 6.6 percent. At the same time, inflationary pressure remains in the segments of stationery, building materials, household appliances, furniture and jewelry.
According to Khaidarshina, this is due to the violation of supply chains and the shortage of semiconductors.
Food inflation in Azerbaijan in March slowed down to 16.8 percent year on year she also noted.
"Nevertheless, the growth rate of food prices remains high, which contributes to the growth of inflationary expectations of the population. Pro-inflationary pressure persists in the segments of confectionery, bakery and pasta, oil and fat products, sugar, coffee, also certain types of fruits and vegetables," Khaidarshina said.
This is understandable in the context of accelerated growth in world food prices (according to the UN, up to 59.3 percent year-on-year in March) and an increase in the cost of imports, Khaidarshina added.