BAKU, Azerbaijan, June 24. The Central Bank of
Azerbaijan (CBA) has said its forecast for annual inflation to
remain within the target range in both the current and next year is
unchanged, although it noted rising external cost pressures.
According to the CBA, recent changes in the global economic
environment have increased the likelihood of external inflation
risks.
“In a rapidly changing global environment, the increase in world
food and fertilizer prices, higher transport and logistics costs,
the expansion of imported inflation from trading partner countries,
and the slowdown in the strengthening of the nominal effective
exchange rate may increase external risk factors for inflation,”
the bank said, adding that it is conducting in-depth analysis to
assess the sustainability of these factors.
At the same time, the Central Bank noted that the risk of
excessive domestic demand expansion remains low under current
fiscal and monetary conditions.
Inflation continues to remain within the target range and is
broadly aligned with the forecast trajectory under the baseline
scenario. In May 2026, 12-month inflation stood at 5.6%. Annual
price growth was recorded at 6.6% for food products, alcoholic
beverages and tobacco, 5.7% for paid services, and 3.9% for
non-food goods. Annual core inflation also stood at 5.6%.
