Inflation to Decrease to Single-Figure Level in Azerbaijan after 2009 without Serious Foreign Pressure on Consumer Prices

Business Materials 6 November 2008 22:58 (UTC +04:00)

Azerbaijan, Baku, 6 November /corr. Trend I.Khalilova / According to the macroeconomic forecasts of the Government of Azerbaijan, the growth rates of the inflation in 2009 are expected averagely at the level of 12-14%, Shahin Mustafayev, Minister of Economic Development, said during discussions on the project of Public budget for 2009-2012 at the joint meeting of the parliamentary commissions on 6 November.

"Reaching such forecasts will be possible in the case of the absence of serious foreign impact on the consumer prices, due to reduction in the growth rates in the budget expenditure, regulation of financial market, strengthening of anti-inflation measures, and also prevention of a new increase in the consumer prices," said Minister.

He said that over the next three years, the growth rates in the inflation will be brought to the single-figure level.

Over the past nine months of 2008, the index of consumer prices in the annual calculation was 21.5%, that according to Mustafayev, causes concerns despite the fact that the growth rates in the incomes of population exceeded inflation by 14.1%, composing 35.6%.

"The researches showed that in the first half of 2008 the increase of pressure on the inflation is connected with a sharp increase in the prices in the world commodity markets, in particular, with the rise in price of foodstuffs," said the Minister.

At the same time he considers that in the recent months the situation changed in the world markets, which together with other factors made it possible to decrease inflation by 2-3% as compared to the beginning of year. By the end of 2008 the inflation is expected at the level of 20%.

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