World Bank forecasts 2.3% inflation in Azerbaijan for 2025

The World Bank (WB) forecasts that inflation in Azerbaijan will be 2.3% in 2025 and will remain at this level in 2026.

The figure will decrease to 2.2% in 2027, and to 2% in 2028-2029, Caliber.Az reports, citing WB report on Azerbaijan.

The target inflation range set by the Central Bank of Azerbaijan (CBA) is 4±2%.

The Ministry of Economy expects annual inflation in the country to be 4.6% in 2025 and 4% in 2026. According to the January 2025 forecast by the Central Bank of Azerbaijan, inflation is expected to be 5.5% in 2025 and 3.8% in 2026.

The UN, in turn, forecasts inflation in Azerbaijan to be 3.6% this year, and 3.1% in 2026.

International rating agencies S&P Global and Moody's predict the average annual inflation in Azerbaijan to be 4% this year and 3% next year. According to Fitch Solutions, inflation will be 4% in 2025 and will accelerate to 4.4% in 2026.

The largest banking group in the Netherlands, ING Group, forecasts average annual inflation in Azerbaijan to be 5.2% in 2025 and 4.9% in 2026.

The average annual inflation in Azerbaijan last year was 2.2%, and in January 2025, it was 5.4%.

By Khagan Isayev