Azernews.Az

Inflation could be contained at single digits in Azerbaijan in 2008 if price hikes in world markets subside, Economic Development Minister Heydar Babayev says.
"The increase is predicted to range between 11% and 13% under the 2008 budgetary package," he told a board meeting of the ministry last Wednesday.
Babayev noted that external factors contributed to price rises in the country last year. He said the hike in energy prices and utilities fees ordered early in 2007 affected inflation the most.
Inflation made up 16% in 2007, according to official figures, but informal sources put the indicator at 30%.
The minister said the country's pricing regulator, the Tariff Council, had no plans to alter the prices this year. "Despite some proposals in the utilities sector, an increase is out of the question. The main thing is for quality to improve, while prices will be considered after that."
A local analyst has argued that projections on keeping inflation below 10% this year did not appear convincing.
"The statement by the Economic Development Ministry that inflation will not exceed single digits in 2008 made despite projections by the National Bank and the State Statistics Committee that we will have double-digit inflation is surprising," head of the Economic and Social Development Center Vugar Bayramov said.
"Another thing that is surprising is that this forecast comes at a time prices are rallying in world markets," the analyst said.
He maintained that the ministry erroneously enumerated the facts underlying inflationary increases.
"Price hikes are not due to those in world markets or the increase in prices for energy alone. The main reason for that is artificial price rises in the country. The situation in that respect is increasingly deteriorating, and such increases are basically not being countered," Bayramov concluded.
The International Monetary Fund last week predicted that inflation will make up 17% in Azerbaijan in 2008.