"S&P Global Ratings" international rating agency predicted that inflation in Azerbaijan will be 12% in 2023, APA-Economics reports.
This forecast was included in the report of the international rating agency "S&P Global Ratings" on Azerbaijan.
"Like most other emerging and advanced economies, Azerbaijan's inflation has continued to exceed our forecasts, surpassing levels over 2016-2017, when prices rose significantly following the 2015 manat devaluation. Current upward price pressures are driven by the effects of the post-pandemic reopening, food price inflation, and global trends since Azerbaijan imports a wide range of goods from abroad and foreign inflation developments affect it significantly. We now forecast that inflation will average 12% in 2023, down from almost 14% in 2022. It should thereafter gradually slow to 5% through 2025. The Central Bank of Azerbaijan has been progressively tightening monetary policy in response," "S&P Global Ratings" noted.
The rating agency added that the Central Bank of the Republic of Azerbaijan is gradually tightening its monetary policy in response to reduce inflationary pressures. In this regard, "S&P Global Ratings" predicted that inflation in Azerbaijan will gradually decrease to 5% by 2025.