BAKU, Azerbaijan, July 8. The International Monetary Fund (IMF) has forecasted a moderate growth of inflation in Azerbaijan in 2022, Trend reports via the fund.
According to the IMF, inflation is expected to decrease in Azerbaijan in the medium term.
Inflation will remain high this year reflecting adverse external factors, high food prices and supply chain rigidities. Inflationary risks are expected to gradually decrease from next year, the IMF said.
Additional monetary tightening would be needed to support inflation returning in Azerbaijan to the upper bound of the target band (four +/- two percent) of the regulator [the Central Bank of Azerbaijan]. It can be expected that by end-2024, the bank's target band will be achieved, the fund noted.
The inflation forecast of the Azerbaijani regulator for 2022 is four percent (+/- two percent). Under the upper bound of the target band, the Central Bank means six percent, however the bank forecasted this indicator to approach four percent in the medium term.