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Stability of manat allows stabilizing inflation expectations – Central Bank

13.12.2019,15:43


December 13, Fineko/abc.az. Favorable external conditions, stability in bilateral and multilateral exchange rates, adequate monetary environment, dynamics of administrative prices and low inflation expectations are the main factors supporting the decline in overall inflation.

ABC.AZ reports that the relevant statement was made by the Central Bank. According to the CBA, the low level of factual inflation and the stability of the national currency allow stabilizing inflation expectations. Following the monitoring of the real sector in November, with taking into account the previous month, the expected 3-month price expectations tended to decrease in the non-oil industry, construction and service sectors, while in the trade sector to increase.

Given the latest trends, the CBA has set a reduction in the inflation forecast for the end of this year. The updated forecasts show that inflation by the end of 2019 will be in the range of 2.8-3%. If the existing macroeconomic trends continue, no significant changes in the dynamics of inflation are expected in 2020 as well.