Fitch: Inflation in Azerbaijan to decline to 6 per cent

Fitch Ratings International Rating Agency predicted that inflation will decline in Azerbaijan this year and in 2024.

The agency noted that annual inflation is falling supported by the nominal effective appreciation of the manat relative to main trading partners such as Türkiye and Russia and the easing of world food prices. Nevertheless, pressures in food and non-tradables (most notably services) remain strong, APA-Economics reports.

We forecast annual inflation to approach the CBA target band ceiling (4±2 per cent) by end-2023, so average inflation will decline to 10.1 per cent in 2023 and 6 per cent in 2024. Higher commodity prices and demand-side pressures represent risks to disinflation.