Azerbaijani CBA Sees Main Reason For Inflation Risk Balance Shifts In External Factors

2025-10-03 10:06:39

(MENAFN- Trend News Agency) BAKU, Azerbaijan, October 3. The shifting sands of the inflation risk balance were largely tied to outside influences, Trend reports via the Central Bank of Azerbaijan (CBA).

The CBA pointed out that the wheels of global trade are turning faster, leading to a rollercoaster of ups and downs in commodity and financial markets.

"In these circumstances, the increase in inflation in the countries that are the main trading partners, the decrease in the dollar index and the low-rate strengthening of the nominal effective exchange rate are external risk factors. As internal risk factors that may increase inflation, the excess growth of aggregate demand, along with cost factors, can be marked.

In general, the share of internal factors in the inflation forecasts for 2025-2026 is underestimated. According to the base scenario, the forecast that annual inflation will be within the target (4±2%) in 2025 and 2026 remains unchanged," the bank added.

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