BAKU: The inflation rate in Azerbaijan is expected to be 5.4 percent in 2024 and 5.5 percent in 2025 in the baseline scenario, Trend reports via the forecasts of the Central Bank of Azerbaijan (CBA).

‘The current monetary conditions are designed to keep inflation within the target range and stabilize inflation expectations. According to updated forecasts, if conditions remain unchanged, inflation is expected to be 5.4 percent in 2024 and 5.5 percent in 2025,’ CBA stated.

The increase in the inflation forecast is attributed primarily to the anticipated strengthening of the nominal effective exchange rate of the manat at a lower level, as well as changes in state-regulated prices and tariffs for various products and services.

‘The direct and indirect additional impact of these regulated price increases on the inflation forecast is expected to be 1.5 percentage points, with one percentage point projected for 2024,’ CBA added.

Source: Trend News Agency