Decrease of inflation rate will not affect business activity in Azerbaijan: minister

Business Materials 12 December 2008 15:01 (UTC +04:00)

Azerbaijan, Baku, Dec.12 / Trend , corr. I.Khalilova /"The growth rate of inflation in Azerbaijan as a result of 2008 is expected at 16-17% rate," Shahin Mustafayev, the Economic Development Minister, said on Dec.12. The similar forecast was made by the National Bank of Azerbaijan recently.

According to the minister, the decrease of consumer prices in the country is due to the global processes and drop in the price of import commodities.

"However, the reduction of inflation rate will not affect the business activity in Azerbaijan," Mustafayev said.

In accordance with macro economic forecasts of the Azerbaijani Government, the inflation rate is expected at 12-14% rate in 2009.

"Reaching of such forecasts is possible in the case of absence of serious foreign influence on consumer prices due to reduction in growth rates of budget outlays, regulation of financial market, strengthening of anti-inflation measures, and also averting of a new increase in consumer prices," the minister said while discussing the 2009 public budget in the Parliament.

In 2010-2012, the inflation growth rate will be of well-defined rate.

The consumer prices index within ten months of the year made up 21.6%.

The expectations of the government for reduction in inflation prior to the end of the year is connected with the fact that besides a drop in world prices of foodstuffs and oil, the stabilization of the internal factors is observed, which cause inflation, in particular, growth rates in the monetary stock were reduced.
In 10 months the monetary stock grew by 24% against 65%within the analogous period of 2007.

NBA took anti-inflation measures, among which were reduction in stock-taking rate from 15% to 8%. For regulating of course policy and reduction in influence of course in trading partners on the inflation was introduced the bi-currency system.

Have any feedback? Contact our journalist at: [email protected]