BAKU, Azerbaijan, Oct. 8
By Zeyni Jafarov - Trend:
The World Bank (WB) forecasts the inflation rate in Azerbaijan in the medium term to be lower than a target range set by the Central Bank of Azerbaijan (CBA), Trend reports referring to WB’s updated report on Europe and Central Asia.
According to the report, consumer prices in the country will rise by 3.3 percent in 2020 and 2.9 percent in 2021, and thus a gradually recovering economy will create favorable opportunities for this forecast.
The bank's forecasts inflation in Azerbaijan to be 2.8 percent for 2022, said the report.
Earlier, the board of the CBA lowered the discount rate from 6.75 to 6.5 percent and this decision was aimed at supporting total demand, keeping inflation within the target (4±2 percent), and thereby accelerating the recovery process, the report said.
According to CBA’s September forecast, by the end of 2020, inflation in Azerbaijan is expected in the range of 3 - 3.2 percent, which is below the center of the target range.
In 2019, the inflation rate in Azerbaijan was 2.9 percent.
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