According to the econometric model of the National Bank of Azerbaijan (NBA), over January-September, 2006, the share of monetary funds in the formation of 6.2 percent of inflation made up 39.1 percent. According to NBA, among monetary factors, the main influence falls on money supply, which growth made up 57 percent, Trend reports. The growth occurred in during the period December 2005 to July 2006. The growth of the nominal efficient rate on the non-oil sector of the economy made up 1.1 percent from November, 2005 until June 2006.
Non-monetary factors had their significant influence on the inflation rate (60.9%). The share of administrative regulated prices in the reporting period made up 20.6%, that is connected with the diesel fuel price increase in January in 2 times, kerosene 1.3 times, sugar 34.6%. The influence of season factors was at the level of (-22.3%), where due to summer, the prices in May-September, 2006 decreased by 3.6%. Whereas, due to winter, the prices increased by 2.5% in January-April, that brought to the growth of the inflation rate on 15. %.
The share of foods in the forming of the inflation in September, 2006 versus the beginning of the year made up 78.2%. The share of bread and bakery foods-3.2%, meat and meet foods 25.1%, fruits and vegetables 23%, oil and fat 1.6%, milk and eggs 12.7%, sugar, tea 12%, alcohol and tobacco 0.5%. In the reporting period, the share of nonfoods in the formation of the inflation rate was 15.8%, services -6%.