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Central Bank of Azerbaijan unveils inflation forecast

29 October 2026 10:23 (UTC +04:00)

The Central Bank of Azerbaijan (CBA) has lowered its inflation forecast for 2026 and raised it for 2027, APA-Economics reports.

This was stated in the CBA's announcement on the parameters of the interest rate corridor.

According to the updated October forecasts, annual inflation is expected to be 5.9% at the end of both 2026 and 2027.

Compared to the July forecast, the expectation for 2026 has been reduced by 0.2 percentage points, while the forecast for 2027 has been increased by 0.1 percentage points. Thus, the previous forecasts were 6.1% and 5.8%, respectively.

The Central Bank stated that the forecasts under the baseline scenario assume that state-regulated prices and tariffs will remain stable.

Inflation risks are mainly related to the international environment. Against the backdrop of global geopolitical uncertainty, the risk of rising energy and food prices, as well as the transmission of these increases to domestic prices through major trading partners, remains significant.

Note that annual inflation in September decreased by 0.2 percentage points compared to August, reaching 5.5%, while annual core inflation stood at 4.9%. The CBA's inflation target is 4±2%.

Rahim Tariverdiyev

Azerbaijan Central Bank of Azerbaijan CBA inflation inflation forecast monetary policy Azerbaijani economy consumer prices economic outlook inflation risks