Target inflation in Azerbaijan amounts to 2.4%

By  Trend

The target annual inflation rate in Azerbaijan made up 2.4 percent in August 2019, Trend reports referring to the Central Bank of Azerbaijan (CBA).

As noted, prices for food products rose by 4.7 percent. Meanwhile, a decrease of 1.2 and 0.1 percent was observed in prices for non-food products and services, respectively.

The increase in food prices is primarily due to the rise in prices of some products in the global market.

CBA polls showed that a decrease was observed in August with regards to inflation expectations in the spheres of trade, services and construction, which was contrasted with an increase in said expectations with regards to the non-oil processing industry sector. Among households, the proportion of those who expect inflation to accelerate did not change.

This year, the CBA expects inflation at 4±2 percent.

An analysis of the risk balance shows that external factors have a greater effect on inflation in the medium term than internal factors, these factors including the tension in world trade and foreign exchange markets, as well as volatility in world commodity markets amid worsening growth prospects for the global economy.

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