Azerbaijani CBA Predicts Nation's Annual Inflation Rate In 2026

2025-04-23 03:17:10

(MENAFN- Trend News Agency) BAKU, Azerbaijan, April 23. Annual inflation in Azerbaijan is expected to be around 5.3 percent this year and 4.3 percent in 2026, according to updated forecasts for April this year, Trend reports via the CBA.

The bank noted that the changes in the balance of risks to inflation since the last meeting are mainly related to the external environment.

"The growth of the scale of trade wars and the continuation of geopolitical tensions further increase price volatility in international commodity markets. Mutual tariff increases, along with weakening global trade, also raise the risk of instability in financial markets.

Cost factors and excess growth in aggregate demand can be noted as internal risk factors that may increase inflation. Also, the possible effects of credit activity on price stability are constantly being monitored.

In general, the share of internal factors in inflation forecasts for 2025-2026 is underestimated," the CBA explained.

Besides, the CBA pointed out that, in general, the current monetary policy is aimed at maintaining inflation within the target range and stabilizing inflation expectations.

"The forecast that annual inflation will be within the target range (4±2 percent) in 2025 and 2026 under the current policy framework remains unchanged," the bank added.

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