15:17 - 4.12.2024

---

December 4, Fineko/abc.az. Over the past decade, inflation in Azerbaijan has averaged 5.5%, and we predict that inflation will average 5.0% over the 10-year forecast period until 2033, ABC.AZ informs, referring to Fitch Solutions’ report.

FS notes that the Central Bank has defined a four-year plan for complete transition to a monetary policy system with a view to inflation by 2026, which indicates that by that time the Central Bank will allow the manat to be traded more freely on the foreign exchange market.

Due to rising food prices and the Russian-Ukrainian war, inflation has reached a historic high.

This has led to a significant disruption of the supply chain for Azerbaijan. However, a gradual decline in prices is expected in the coming years:

"We do not expect this to cause serious stress for the local currency. Given our view that the exchange rate will remain mostly stable during this period, we predict that inflation will return to trend in the long-term prospect.”