Baku, Azerbaijan, Feb. 12
By Anvar Mammadov – Trend:
Anti-inflationary monetary policy, optimal management of the money supply and stabilization of the Azerbaijani manat rate since mid-2017 played an important role in keeping inflation at a one-digit level, Elman Rustamov, chairman of the Central Bank of Azerbaijan, said at a press conference in Baku on Feb. 12.
"The change in the supply-demand ratio, world food prices and inflation expectations also affected the price dynamics in the country," he said. “According to our estimates, the inflation rate will continue to decrease and will reach the planned level by the end of 2018."
He said that surveys conducted among individuals and in the business sector, stabilization of the exchange rate of manat and dynamics of decline in actual inflation rate make it possible to forecast lower inflation expectations.
"The further keeping of inflation rate at a one-digit level will also depend on a decrease in inflation expectations and their sensitivity to the changes in the economic situation," Rustamov said.
In January 2018, the average annual inflation rate in Azerbaijan was 5.5 percent, according to the country’s State Statistical Committee.
The Azerbaijani government expects the average annual inflation rate at 6.8 percent by the end of 2018.