Azerbaijan, Baku, 24 May / Trend E. Aliyev /
According to the International Monetary Fund (IMF), the average inflation rate of consumer prices in Azerbaijan will be at 3.4 per cent by the end of 2013. In 2014, this figure is projected at 6.7 per cent, a statement released by the IMF said.
'Compared with the increased level of 2011, the inflation rate in the region of the Caucasus and Central Asia decreased due to lower world prices for food as well as the tightening of monetary policy in some countries. It is expected the inflation rate will rise moderately in 2013 and 2014 given the high economic activity and a more liberal direction of fiscal policy, especially in the oil and gas importing countries', the statement said.
Policy-makers in all countries in the region according to the IMF should take advantage of the favourable prospects to recover reserves of the fiscal policy.
'This should be done by improving the quality and efficiency of public spending, preventing further increases of expenditures that will be difficult to reduce later on, revising numerous existing tax exemptions and improving their data collection and containment of general subsidies', according to the statement.
The continuing dynamic growth and recent rise in global food prices may again push up inflation in the region as food accounts for a large share of the consumer basket of the Caucasus and Central Asia, the IMF said.