ADB forecasts 7% inflation in Azerbaijan

The Asian Development Bank (ADB) forecasts that inflation is projected to accelerate to 7.0% in 2022 as food imports from Russia and Ukraine, both major suppliers, are disrupted, then subside to 5.3% in 2023.

The ADB expects annual inflation in the Caucasus and Central Asia to reach 8.8% this year and 7.1% next year. The highest inflation in the region in 2022 and next is projected in Kyrgyzstan (15% and 12%, respectively), Tajikistan (15% and 10%), and Turkmenistan (13% and 10%).

According to a survey conducted in Azerbaijan, more than 24% of households expect inflation to rise further.

In 2021, the average annual inflation in Azerbaijan was 6.7%. The Ministry of Economy forecasts that the average yearly inflation in Azerbaijan will decrease to 4% in 2022. According to the Central Bank, the average annual inflation in 2022 will be 6.6-7.1%.

In January-February of this year, the consumer price index in Azerbaijan compared to the same period last year amounted to 112.2%, including 117.2% for food, beverages, and tobacco products, 106% for non-food products, and 110.2% for paid services provided to the population.

In February 2022, the consumer price index was 101.1% compared to January and 111.9% compared to February last year.