Inflation in Azerbaijan to slow down to 5% by 2025 - S&P

Finance Materials 10 June 2023 14:04 (UTC +04:00)
Kamran Gasimov
Kamran Gasimov
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BAKU, Azerbaijan, June 10. Inflation in Azerbaijan will average 12 percent in 2023, down from almost 14 percent in 2022, Trend reports.

According to the S&P Global Ratings, the inflation should thereafter gradually slow to five percent through 2025.

"The Central Bank of Azerbaijan has been progressively tightening monetary policy in response," the agency noted.

The S&P analysts said that like most other emerging and advanced economies, Azerbaijan's inflation has continued to exceed our forecasts, surpassing levels over 2016-2017, when prices rose significantly following the 2015 manat devaluation.

"Current upward price pressures are driven by the effects of the post-pandemic reopening, food price inflation, and global trends since Azerbaijan imports a wide range of goods from abroad and foreign inflation developments affect it significantly," the agency added.

In 2022, the inflation rate in Azerbaijan made up 13.9 percent.