BAKU, Azerbaijan, September
23. Annual inflation in Azerbaijan is within the
target range and is tracking the forecast trajectory of the
baseline scenario.
This was reflected in a statement by the Central Bank of
Azerbaijan (CBA).
"In August 2026, 12-month inflation stood at 5.7%, which is 0.1
percentage points lower than the corresponding figure in July.
Annual price growth was 7.2% for food products, alcoholic
beverages, and tobacco products; 5% for paid services; and 3.7% for
non-food products. Annual core inflation was 5.1%. The Central
Bank's forecast that annual inflation will remain within the target
range over the medium term remains unchanged," the statement
noted.
The statement emphasized that there have been no significant
changes in the balance of risks regarding inflation since the last
meeting.
"Amid global geopolitical uncertainty, the rise in energy and
food prices—as well as the risk of this increase being passed
through from key trading partners to domestic prices—remains
significant. The extent of this pass-through will depend, among
other factors, on the dynamics of the manat's nominal effective
exchange rate. Any potential revision to the Central Bank's
inflation forecasts in the coming period will largely depend on the
scale at which these risks materialize. Under current fiscal and
monetary policy conditions, domestic demand is not expected to
drive up inflationary pressures," the statement noted.
Data regarding inflation in Azerbaijan was also presented in an
analytical review by the Dutch banking group ING.
"Current inflation in Azerbaijan remains stable at the 5.6–5.8%
level, which falls within the 4% ± 2% target range," ING said.
According to ING analysts, given the rising inflation and
interest rates globally and in the region, the Central Bank of
Azerbaijan (CBA) may place greater emphasis on inflation risks in
its commentary. The bank also did not rule out the possibility that
the regulator might signal a tighter monetary policy stance in the
future.
