BAKU, Azerbaijan, December 28. Annual inflation in Azerbaijan for food products in November 2024 was 4.4 percent, non-food goods increased by 2.2 percent, and the annual inflation for services during this period made up six percent, Trend reports via the Central Bank of Azerbaijan's (CBA) statement on the main directions of monetary policy for 2025.
According to the statement, this year's monetary policy focuses on keeping inflation within the target range through monetary conditions (such as interest rates, exchange rates, etc., which are indicators of financial markets).
"Monetary policy tools were used to neutralize the impact of non-monetary (autonomous) factors on monetary policy. The annual core inflation, calculated excluding fluctuations in regulatory prices and seasonal agricultural products, was 3.9 percent in November. Several external and internal factors influenced the annual inflation this year.
A decrease in the average weighted inflation in partner countries compared to peak levels, as well as the continued strengthening of the nominal effective exchange rate of the manat, had a dampening effect on inflation. Over the 11 months of 2024, the nominal effective exchange rate of the manat in non-oil trade increased by 7.1 percent.
The reduction in inflation was also supported by the policy implemented in recent years by the government and the CBA to ensure price stability. In 2024, there was also stability in the foreign exchange market, with 87 currency auctions held by the CBA over 11 months for the sale of foreign currency from the State Oil Fund of Azerbaijan (SOFAZ). During these auctions, the market's demand for foreign currency was fully satisfied," the statement said.
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