Azerbaijan to Experience 20% Inflation
Azerbaijan, Baku / Trend corr A. Gasimova / The International Monetary Fund (IMF) forecasts 20% inflation in Azerbaijan in 2007, the head of the IMF representative office in Azerbaijan, Basel Zavoyko, reported on 4 June.
"The forecast is not exact. It depends on Azerbaijan's reactions to current economic processes," he said.
According to the recently released report of the IMF, two-digit inflation is expected only in Azerbaijan, Iran and Iraq among oil exporting countries.
According to Zavoyko, inflation in Azerbaijan can decrease providing a partial drop in expenditure.
Index of consumer prices forecasted by IMF for Azerbaijan will increase by 21.1% in 2007 (8.4% in 2006). The increase will be caused not only by monetary factors, as the increase of expanded money supply in 2007 is expected to comprise 79% (86.4% in 2006).