A total of 38.3% in Azerbaijan was related to monetary factors. In October the core inflation in Azerbaijan comprised 0.5% as compared September 2005, 2.9% - December 2004 and 7% - January-October 2004, the National bank of Azerbaijan (NBA) told Trend. Consumer inflation made up 0.5%, 2.8% and 7.1%. Core inflation without price growth over a month would be 0.3%, 2.5% and 7%.
Monetary impact (38.3%) is related to money mass growth from December 2004 (26.3%) and exchange rate drop (-12%). Non-monetary factors (61.7%) include rise in price of communal services (water +3.2%) and (gas +4.2%), impact of season factors (+10.5%) and inflation dynamics over 2004 (+13.2%), rise in demand for goods (-2.9%) and season peculiarities of demand (-27.7%).
The NBA expects 9.7% consumer inflation.