MP: Salary increase simply compensates for inflation growth

15:30 - 7.06.2023

June 7, Fineko/ Inflation in Azerbaijan is not fully linked with monetary factors, ABC.AZ reports, quoting MP Ali Masimli as saying this at a meeting of the Milli Majlis Committee on Economic Policy, Industry & Entrepreneurship.

"If there is transition to tight monetary policy in order to prevent inflation, this will reduce the growth of GDP below 1.8%, which will create additional serious problems. Inflation in Azerbaijan is not fully linked with monetary factors," he said.

According to Masimli, inflation is 10.4% in the Economy Ministry’s forecasts and 8.3% in the forecasts of the Central Bank.

The MP added that growth of the average monthly salary in Azerbaijan this year is projected at the level of 10%.

"From this angle, from the forecast on an increase in wages almost by 10% in 2023, it turns out that nothing will happen this year in increasing population’s real incomes. The increase in wages simply compensates for the increase in inflation, no more. In this direction, it is important to convene a special meeting in the Economic Council, revise forecasts and a new doctrine with its further implementation," Masimli added.