Azerbaijan's Central Bank Explains Reasons For Revising Inflation Forecast

(MENAFN- Trend News Agency) BAKU, Azerbaijan, October 29. Inflation in Azerbaijan is projected to reach 5.9% in 2026, which is 0.2 percentage points lower than the forecast released by the Central Bank of Azerbaijan (CBA) in July, the CBA Governor, Taleh Kazimov said at a press conference on Thursday dedicated to the parameters of the interest rate corridor, Trend 's correspondent reports from the event.

He said that inflation forecasts were updated in October, and certain changes were made compared to the July forecasts.

“For 2026, we forecast inflation at 5.9%. This is a downward revision of 0.2 percentage points compared to the July forecast. The main reason for this is the lower-than-expected growth rate of the agricultural producer price index. We view this positively,” he noted.

Kazimov reported that the inflation forecast for 2027, on the other hand, was raised by 0.1 percentage points compared to the previous estimate. The main reason for this is the expected rise in inflation among trading partners.

According to the CBA governor, one of the main factors influencing inflation in Azerbaijan is external price dynamics. The rise in global energy and food prices resulting from the conflict in the Middle East has led to higher inflation among trading partners, especially among import partners.

“We have brought this inflation into our own economy,” Kazшmov emphasized.

He added that core inflation stood at 5.9% for the first nine months of this year.

As for price trends, prices for food products, alcoholic beverages, and tobacco products rose by 6.9%, while the corresponding figures for non-food goods and services were 3.6% and 5.1%.

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