Azerbaijan: inflation forecasts have fallen

Business Materials 7 August 2017 20:55 (UTC +04:00)

Baku, Azerbaijan, Aug. 7


Inflation forecasts have fallen for the third quarter of 2017, stated in the report of the Central Bank of Azerbaijan (CBA) on monetary policy.

"Constant monitoring of the real sector, conducted by the CBA, showed that expectations for price growth in the III quarter as a whole has decreased, in particular, the cost of household appliances and cars. Expectations for furniture prices remained stable," the report said.

As for the service sector, the expectations for price increase have declined in absolutely all areas. Most of this is manifested in prices associated with transportation, hotels, health care and communications.

In the processing industry, inflation expectations fell in the areas of food supplies, beverages, chemical, textile, engineering, and plastic products. The only sphere of economy where the expectations for price increase have slightly amplified is the construction sector.

During the reporting period, prices for 521 product names and 186 types of services decreased.

Descending effect on inflation is exerted by the nominal effective rate of manat, inflationary processes of the main trading partners of Azerbaijan, and other factors.

According to the State Statistics Committee of Azerbaijan, the inflation rate in the first half of 2017 was 13.9 percent. At the same time, monthly inflation in the country is gradually decreasing. In view of the above, level of inflation in January was at 2.3 percent, in February and March – 1.6 percent, in April and May – 0.2 percent. Starting from June, seasonal deflation has been spotted at the level of one percent.