(MENAFN- Trend News Agency) BAKU, Azerbaijan, May 1. Annual inflation inAzerbaijan is expected to be within the target (4±2 percent) in2024 and 2025, Trend reports via the Central Bank of Azerbaijan(CBA).
According to the April forecasts of the CBA for this year,annual inflation is expected to be 3.5 percent, whereas 2025 isexpected to be 4.2 percent.
It is emphasized that the April forecast has been loweredcompared to the January forecast.
"The inflation risk balance has not shifted significantly sincethe last meeting. Geopolitical tensions, barriers along criticalinternational trade routes, climate change, global commodity pricechanges, and inflation rates in partner countries continue to bethe key causes of foreign-driven inflation risk. Nonetheless, theexpectation of continuing tight global monetary conditions and amore moderate approach to interest rate cuts by major central banksin the medium term is likely to suppress global inflation, domestically, the principal risk of inflationescalation stems from the activation of local cost pressures,alongside government spending and excessive growth in overalldemand. Taken together, the potential upsides and downsides ofinflation largely offset each other. Annual inflation is projectedto fall within the target range (4±2 percent) for both 2024 and2025 if current conditions persist (April forecast: 3.5 percent for2024 and 4.2 percent for 2025)," the CBA said.
To note, the UN predicts an average annual inflation rate of 5.9percent for Azerbaijan in 2024 and 3.9 percent in 2025. Meanwhile,the ADB forecasts 5.5 percent for 2024 and 6.5 percent for 2025,whereas the WB anticipates rates of 2.2 percent for 2024 and 2.3percent for 2025.
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