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Asian Development Bank raises Azerbaijan’s inflation forecast

09 April 2025 09:43 (UTC +04:00)

The Asian Development Bank (ADB) has raised its inflation forecast for Azerbaijan by 0.4 percentage points, APA-Economics reports citing the Bank.

ADB has increased its average annual inflation forecast for 2025 to 4.2%, while the forecast for 2026 is set at 3.5%.

For the Caucasus and Central Asia, the Bank forecasts inflation at 6.9% in 2025 and 5.9% in 2026.

"In June 2024, the increase in regulated fuel prices continued to affect other domestic prices as well. Additionally, in January 2025, tariffs for water, electricity, and some other utility services were raised, further intensifying inflationary pressures.

To keep inflation within the target range of 2%–6%, the Central Bank has maintained the interest rate at 7.25% since May 2024.

In 2025, inflation may rise due to the potential impact of global tariff changes leading to higher import prices. However, in 2026, weaker economic growth and the diminishing effects of earlier administrative price hikes are expected to lead to a decline in the inflation rate," ADB added.

Rahim Tariverdiyev

Azerbaijan inflation fuel prices utility tariffs Central Bank interest rate ADB economic forecast import prices global tariffs 2025 2026 economic growth price changes