Zero inflation in Azerbaijan may remain
Baku, Azerbaijan, November 17 / Trend /
Leila Abdullayeva, Trend Analytical Center Expert
Consumer prices in Azerbaijan did not change in October so the State Statistics Committee reported zero inflation rate. Zero inflation rate last time was registered in Azerbaijan in April 2010. In October, prices for foods and nonfood produces increased by 0.1 percent and 0.4 percent, respectively. Prices for paid services in October decreased by 0.5 percent against September. For comparison: official inflation rate in Azerbaijan in October 2010 was equivalent to 0.9 percent.
The stagnation at the internal consumer market is caused by a seasonal fall of prices for a whole range of foods such as flour, bread, buckwheat, eggs, lemons, bananas, oranges, tangerines, apples, pears, quince, pomegranate, persimmons, nuts, chestnuts, cabbage, carrots, garlic, onions, and potatoes.
The decrease of tariffs for services covered mostly Internet-services, international transportation of passengers, and air and railway transportation of passengers to CIS states.
The inflationary process slowed down also due to a rich harvest of agricultural produces grown by farmers, and abundance at bazaars. In January-September 2011, the collection of agricultural produces increased by 7.6 percent against the respective period of 2010.
Particularly, plant-growing produces and cattle-breeding produces were up 10.6 percent and 3.7 percent, correspondingly. The population spends the bigger part - 65.9 percent - of its earnings for meals and goods of everyday use. Thus, the established situation favors purchases.
Besides, the exchange rate of manat has strengthened, the increase of money supply has slowed down, and so have the paces of influence of trade market instruments: all this reduces global inflation's pressure over the internal market of Azerbaijan.
Zero inflation rate may further continue basically due to a decrease of flour and bread prices in the country in November.
The key objective of the Government of Azerbaijan this year is to prevent a two-digit inflation rate. Average annual inflation is forecasted to be 6 percent in 2012, 5 percent in 2013, 5.3 percent in 2014, and 4.8 percent in 2015. The Government expects inflation rate to be equivalent to 9.8 percent in 2011.