Base inflation on results of 2005 will not exceed 5%
The general inflation in December 2005, by preliminary data was 5,4%, the base inflation will be within 4-5% and not more, director of the Department on monetary policy of the National Bank of Azerbaijan (NBA) Hagani Abdullayev told Trend. It will be specified after receiving the State Statistics Committee (SSC) data on the state of the consumer basket. By calculations of the base inflation NBA clears by approximately 16% from the basket the number of goods and services on which administrative and seasonal prices are set (fruits and vegetables).
The consumer baskets structure changed in mid- 2005, earlier it consisted of 380 kinds of goods and services. By the SSC data the consumer basket is formed now from 585 goods and services.
A scientific-methodological workshop has been held today at NBA on the subject: Inflation and international competitiveness: methodology and central banks experience. Abdullayev said at the presentation, for the base inflation calculation NBA studied the experience of over 50 central banks (Canada, Brazi, Turkey, Thailand, the European Central Bank and etc). Most of them like NBA do not include energy prices changes, public transport into their base inflation calculations, as they are regulated by the state and affect largely the inflation. The difference between the base and the general inflation is about 1-2%.
According to Abdullayev, 40 % of the base inflation has formed on the account of the monetary factors and 60%- of non-monetary ones. This correlation is supposed to be preserved also in 2006.