BAKU, Azerbaijan, December 10. At present,
Azerbaijan's annual inflation is progressing in accordance with the
anticipated trajectory and remains within the established target
range, Trend reports
via the Central Bank of Azerbaijan.
Meanwhile, in October 2025, 12-month inflation stood at
5.9%.
According to the information, annual price growth was 8.2% for
food, alcoholic beverages, and tobacco products, 5.6% for paid
services, and 2.5% for non-food items. Annual core inflation was
5%. External and internal cost factors mainly influence actual
inflation.
“According to the baseline scenario, the annual inflation
forecast within the target range by the end of 2025 and in 2026
remains unchanged. Analysis of recent trends shows that the
inflation forecast for next year is likely to be revised downward,”
the information notes.
“An analysis of changes in the balance of inflation risks since
the last meeting shows that upside risks have declined somewhat.
However, geopolitical tensions and instability in the global
trading environment continue to fuel high uncertainty in commodity
and financial markets. The main external risk is related to the
pass-through of import prices to domestic inflation. This risk will
depend on inflationary processes among trading partners and the
dynamics of the nominal effective exchange rate. Domestic risk
factors are mainly driven by supply-cost factors. The initial
parameters of the state budget until 2026 and the slowdown in the
annual growth rate of credit investments reduce the risk of
excessive growth in aggregate demand," the report says.
