No Increase in Prices of Communal Services in Azerbaijan in 2008: Azerbaijani President

Business Materials 23 October 2007 12:33

Azerbaijan, Baku / corr Trend S.Babayeva / The prices of communal services will not be increased in Azerbaijan in 2008, Azerbaijani President Ilham Aliyev said on 22 October to a meeting of the Cabinet of Ministers dedicated results of socio-economic development of the country over 9 months of 2008 and the future tasks.

The President voiced his hope that the absence of plans in increase of prices of public utilities will lead to a one-digit inflation ratio in Azerbaijan. "One-digit inflation will provide for successful development of the country in 2008 and increase of people's incomes," the head of sate said.

"Increase of electricity prices in Azerbaijan at the beginning of the year gave impetus to rise in inflation. Moreover , the world oil prices also affect this process," Aliyev stressed.

In 2008 the country's currency reserves will reach $10bln. "We cannot spend all these funds. If we direct this capital to domestic market, the inflation will gain speed. We should ensure the growing demand. Wages and pension should be increased and they will be. However, it might promote inflation, if we do suddenly and in big amount," Aliyev said.

According to President, in 2008 minimum wage and pension, as well as salaries of citizens involved in organizations financed out of the public budget will be increased.