Azerbaijan's Inflation Outlook Faces Uncertainty Amid Middle East Events

2026-04-14 09:06:22

(MENAFN- Trend News Agency) BAKU, Azerbaijan, April 14. The impact of developments in the Middle East on Azerbaijan's inflation outlook remains uncertain, said Shahin Mahmudzade, Director General of the Central Bank of Azerbaijan (CBA), during a press conference on the Financial Stability Report, Trend reports.

According to him, assessing the inflationary impact on Azerbaijan requires consideration of multiple factors. Rising oil prices can boost the country's export revenues, foreign exchange reserves, and strengthen the balance of payments.

“On the other hand, higher oil prices may lead to increased inflation in partner countries, which could affect Azerbaijan through imported inflation. Most of the country's key partners are oil-importing states, and this situation leads to the depreciation of their currencies. As a result, on one hand, exchange rates weaken, and on the other hand, inflation rises,” he noted.

Mahmudzade emphasized that under current conditions, it is not possible to accurately forecast the overall impact of developments in the Middle East. The Central Bank is expected to present updated inflation forecasts in early May.

He added that no serious threats to the financial sector are currently anticipated, although ongoing developments are being closely monitored and necessary measures will be taken if required.

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