Azerbaijan, Baku / Trend corr U. Ismayilova / In 2008, inflation in Azerbaijan may drop to one-digit level in case the Government does not increase energy prices as it happened at the beginning of 2007, Ogtay Hagverdiyev, the former head of the Azerbaijani Cabinet's Economics & Finance and Credit Policy Department, said.
The International Monetary Fund (IMF) forecast inflation in Azerbaijan will make up16.6% in 2008 as compared to 17% of 2007. In January 2007, the Azerbaijani Tariff Council increased prices for energy and public utilities, which resulted in a general rise in prices.
The head of the Centre of Economic Researches Gubad Ibadoghlu believes IMF's inflation-related forecasts will come true in case the Government does not prevent the factors causing inflation. According to Iadoghlu, the key factor is monopoly.
"If the factors causing inflation are not removed, then inflation will amount to 15% next year," he said.