"Fitch Ratings" international rating agency predicted that inflation will decline in Azerbaijan this year and in 2024, APA-Economics reports.
The agency noted that annual inflation is falling supported by the nominal effective appreciation of the manat relative to main trading partners such as Turkiye and Russia and easing of world food prices. Nevertheless, pressures in food and non-tradables (most notably services) remain strong. We forecast annual inflation to approach the CBA target band ceiling (4±2%) by end-2023, so average inflation will decline to 10.1% in 2023 and 6% in 2024. Higher commodity prices and demand-side pressures represent risks to disinflation.