Impact of various factors on inflation in Azerbaijan revealed

Price increases in Azerbaijan's trading partner countries have contributed an additional 3.12 percentage points to domestic inflation this year, Taleh Kazimov, Governor of the Central Bank of Azerbaijan (CBA), said at a press conference dedicated to the CBA's decision on interest rate corridor parameters.

"As for internal factors, the increase in consumption by the government and households had an increasing effect of 3.35 percentage points on inflation, while the rise in prices of agricultural products had an increasing effect of 4.28 percentage points," he noted.

According to the CBA's updated forecasts, annual inflation is expected to be around 6% in 2025 and 5.7% in 2026.

Meanwhile, in July of this year, the bank had projected annual inflation at 5.7% for 2025 and 5.3% for 2026.