The State statistics committee is preparing to request the International Monetary Fund for aid in modification of the inter-sector balance and creation of national accounts, the committee chairman, Arif Veliyev told Trend. The fund` s expert will assist in counting expenditures on production, its effect on cost and necessity to regulate them. The committee is currently counting the inflation rate on the basis of the consumer needs formed from 585 goods and services. The committee has transferred to such strategy from the mid 2005.
Thus, the committee does not see any necessity in IMF assistance in counting the index of consumer prices (IPP). A third method of IPP calculation will soon be introduced; now there are 2 of them (one is artificially decreasing the inflation level, the other one is increasing), the third method intends driving the medium prices. Though, the system is very complex and requires a lot of time, Veliev said.
We asked IMF to evaluate the IPP calculation methodology, which is based on international standards, he said. IMF is suggesting basing the system upon the goods circulation, whereas the committee is focusing on the population size. In any case the difference in 2 methodologies is 0, 1 0, 2%. 50% of the whole goods circulation is taking place in Baku, IMF assures. However, Veliev thinks that not all population is spending much on the purchase of food; therefore the goods circulation is smaller. On the other hand such method is inappropriate for Azerbaijan as inflation is counted only on behalf of purchased by the population goods. The circulation level is larger in the capital as there are a large number of enterprises and organizations, which are purchasing computers, cars, furniture etc. creating the larger circulation than in the regions.
Inflation level is not going to increase the last year` s figures this year (9, 6%), which is seen from the price growth for the first three months of 2006 (5, 5%), therefore such outbursts as in October- November 2004 are not expected.