S&P: inflation in Azerbaijan will gradually decrease to 5% by 2025

S&P: inflation in Azerbaijan will gradually decrease to 5% by 2025

Inflation in Azerbaijan will average 12% in 2023 compared to almost 14% in 2022.

Report informs referring to the international rating agency S&P Global Ratings, after that it should gradually decrease to 5% until 2025.

"In response, the Central Bank of Azerbaijan is consistently tightening its monetary policy," the agency notes.

S&P analysts believe that, as in most other emerging and advanced economies, inflation in Azerbaijan continues to exceed the agency's forecasts, exceeding 2016-2017 levels, when prices rose significantly after the devaluation of the manat in 2015.

"The current upward price pressure is driven by the effects of the post-pandemic reopening of the economy, food price inflation and global trends as Azerbaijan imports a wide range of goods from abroad and is significantly affected by inflation dynamics abroad," the report said.

source: report.az