ADB outlook on Azerbaijan: Average annual inflation to weaken

Despite slowing private consumption growth, inflation is projected to accelerate to 7% in 2022 as food imports from Russia and Ukraine, both major suppliers of Azerbaijan, are disrupted.

banks.az reports that this is stated in Asian Development Outlook 2022, the new report of the Asian Development Bank (ADB).

According to the report, the growth rate of consumer prices will decrease slightly next year and is expected to subside to 5.3% in 2023.

In ADB’s opinion, increases in social expenditure, civil service wages, and the minimum wage will spur inflation.

"The exchange rate is projected to remain stable with higher petroleum prices. The Central Bank of Azerbaijan is expected to maintain the policy rate until the middle of 2022 or else raise it as inflationary pressures increase, though monetary policy could be relaxed if inflation slows to within the target band of 2%–6%,” the Outlook says.