The International Monetary Fund (IMF) has forecasted that inflation in Azerbaijan will remain within the Central Bank’s target range (4±2%) from 2025 to 2029, APA-Economics reports.
The Fund has determined that inflation in Azerbaijan will be 5.7% in 2025, 4.5% in 2026, and 4% in 2027-2029. The Fund has revised its 2025 forecast upward by 0.7 percentage points compared to its previous forecast in October 2024.
The IMF has recommended maintaining a stable monetary policy, as it predicts that inflation will remain within the Central Bank’s target range: "The recent rise in inflation reflects adjustments in regulated prices. Considering the current and projected inflation, the Central Bank’s interest rate is effectively neutral overall. However, there are inflation risks from both domestic (increased budget expenditures and demand pressures from strong credit growth) and external (geopolitical tensions, disruptions in global supply chains) factors. The Central Bank should closely monitor these risks, remain cautious, and be prepared to respond if these risks materialize."
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