According to the February 2026 forecasts, annual inflation is expected to be 5.5% in 2026 and 4.0% in 2027, APA-Economics reports, citing the Central Bank of Azerbaijan.
It was noted that the inflation forecast for 2026 has been revised downward.
Since the previous meeting, there has been no significant change in the balance of inflation risks. Globally, the continuation of geopolitical tensions, the strengthening of economic fragmentation trends, and instability in the global trade environment keep uncertainties related to commodity and financial markets at a high level. The main external risk concerns the pass-through of import prices to domestic inflation. The realization of this risk will depend on factors such as inflation dynamics in trading partner countries, the direction of global commodity prices, and volatility in the nominal effective exchange rate. The key domestic risk factor in 2026 could be domestic cost factors materializing more strongly than expected.
The next decision on the parameters of the interest rate corridor will be made based on the direction of forecast and actual inflation, as well as the results of macroeconomic analyses. The Central Bank will continue to use all available tools to ensure price stability.
Follow us on Telegram
t.me/apanewsaz
Follow us on Instagram
Follow us on TikTok
Follow us on Facebook
Follow us on X
