Azerbaijan, Baku / Trend.Capital corr U. Ismaylova / The possible decision of the Tariff Council of Azerbaijan on recurring price rises for several types of public utilities (transport, communications and agricultural irrigation) has both positive and negative points.
The director of the Centre for Economic Research, Gubad Ibadoghlu, said on 14 May that after such a decision, the factors influencing inflation would profoundly heighten what would lead to a decrease in the competition of several local companies.
"However, the financial state of utilities would improve and the services provided to the population would be of a better quality," he said. According to Ibadoghlu, the gradual increase in expenditure for services and the rise in consumer prices will occur in the country with inefficient social management, taking into consideration the implementation of low-quality social programs. "The lengthy process will add other problems for the population," he added.
The increase of targeted social aid and the passing of the public budget will give an impetus to the improvement of social programs. "As a result, a rise in the average monthly salary is not ruled out," Ibadoghlu said
The expert noted that inflation will amount to at least 25% by the end of 2007.