BAKU, Azerbaijan, August 10. The consumer price
index in Azerbaijan grew by 5.7% from January through July 2026
compared to the same period last year.
This was announced in a report published by the State Statistics
Committee.
From January through June 2026, the country’s consumer price
index rose 5.7% year-on-year, including 6.7% for food, beverages,
and tobacco products, 3.8% for non-food goods, and 5.7% for paid
services provided to the population.
Meanwhile, the Central Bank of Azerbaijan (CBA) primarily linked
the upward revision of the inflation forecast to external
factors.
The CBA Chairman, Taleh Kazimov, announced at a press conference
held on July 31 on the interest rate corridor parameters that
several key factors are taken into account when preparing inflation
and economic growth forecasts. Actual trends in both inflation and
economic growth directly affect forecast indicators.
According to him, the upward revision of the inflation outlook
is primarily linked to external factors, including higher inflation
in Azerbaijan's main trading partner countries.
"The upward revision of the inflation forecast is mainly due to
factors of external origin. In this regard, the increase in
inflation in countries that are Azerbaijan's main trading partners
plays an important role," said Kazimov.
The CBA chairman pointed out that expectations of slower growth
in the nominal effective exchange rate compared with the same
period of the previous year have also affected inflation
forecasts.
According to him, the nominal effective exchange rate is
considered a factor that reduces inflation, but a slowdown in its
growth rate weakens this effect.
Kazimov added that economic growth forecasts are also influenced
by a slowdown in actual economic growth and changes in the
economy's potential growth capacity.
The CBA chief emphasized that the decomposition of inflation
forecasts takes into account government consumption, household
consumption, fixed capital investment dynamics, and other
macroeconomic indicators.
