Azerbaijani Government to Strengthen Economic and Administrative Measures to Fight Inflation in 2008
Azerbaijan, Baku, 30 January / corr. Trend I. Khlilova/ The Azerbaijani Government intends to strengthen economic and administrative measures to prevent the artificial rise in the prices in 2008, Heydar Babayev, the minister of economic development of Azerbaijan said to Trend .
"The Ministry of Economic Development of Azerbaijan developed macroeconomic forecasts in 2007 and if there is no change in these speculations including the price rise of imported goods to Azerbaijan, we will achieve one-digit inflation as we planned," the minister said.
At present the prices are not determined by the domestic market, but by global pressures which grow more intense throughout the world economy. This will result in changes in Azerbaijani markets as the range of goods in Azerbaijani markets grow day by day and the demand for these goods increases due to the rise in the standard of living of the people, the minister said.
"We cannot influence price-cutting for imported goods in the world markets with monitoring or with administrative measures," Babayev said. "We can only prevent the artificial rise in the prices," he said.
The macroeconomic forecast for 2008 places inflation at 12% including the expected rise in prices of imported goods. The anti-inflation measures include exerting strong control over the use of the investing program and the yield of the state securities which are expected to be raised within the government's monetary policy. Moreover, the fight against monopolization which influences the consumer market, and the artificial rise in the prices, is planned to be strengthened within the administrative measures. According to the International Finance Organization (IFO) estimations, the prices of the imported oil products increased by 24%. The growth rates of inflation totaled 16.7% at the end of 2007.