Azerbaijan, Baku, Aug. 13 / Trend E. Aliyev /
The monitoring results of the real sector of the economy carried out by the Central Bank of Azerbaijan (CBA) show a decrease in price expectations in all sectors (industry, construction, trade and services sector) in the first half of 2013, according to the CBA report on monetary policy released yesterday.
"The largest price decrease is expected in the retail sector," the report said.
As noted in the document, according to the latest forecast of the International Monetary Fund (IMF), inflation rate in Azerbaijan is expected to reach 3.4 percent in 2013.
"This figure is lower than those forecast for the CIS countries by 3.4 percentage points, the countries of Central and Eastern Europe - one percentage point, and in general, this figure is less than the projected rate of inflation in developing economies by 2.5 percentage points," the report said.
According to the model estimates of the Central Bank, inflation rate will remain within the framework provided by the main directions of the monetary and financial stability policy by the end of 2013.
"The ARIMA (Autoregressive Integrated Moving Average) model was used for evaluation, allowing to define various scenarios of inflation. Evaluation results show that inflation rate will remain at 6.5 percent by the end of 2013," CBA reported.