S&P: Azerbaijan's inflation will gradually subside

S&P: Azerbaijan
# 22 January 2022 08:50 (UTC +04:00)

The average growth of consumer prices in Azerbaijan this year will be 6.5% according to the latest forecast of the international rating agency S&P Global Ratings (S&P), APA reports.

Azerbaijan's inflation exceeded our previous forecasts, reaching an annual average of 6.7% in 2021; this was the highest level since 2016-2017, when prices rose significantly following the 2015 manat devaluation.

The current upward price pressures, similar to those of other countries, are driven by the effects of post-pandemic reopening, food price inflation, and some administrative price increases, including for domestic energy: "We forecast inflation will average 6.5% in 2022 before gradually subsiding to 3% through 2025."