Azerbaijan takes radical anti-inflationary measures, Central Bank says

Azerbaijan takes radical anti-inflationary measures, Central Bank says
# 10 May 2007 13:52 (UTC +04:00)
The average annual inflation rate is a bit above 16% while four-month inflation is around 10%, said Elman Rustamov, the National Bank’s board chair.
“We see the inflation slowing down at present. It doesn’t go by default. We took some radical anti-inflationary measures. We keep cash flow under control. Now we try to reduce the pressure on national currency rate. In general, conversion is in low level presently,” he added.
Mr. Rustamov said that it is forecasted to get usual inflation rate in summer.
“The four month deflation totaled to 2.5% last year. We take account of this. Two main factors- weather and agriculture are important. Fruits-vegetables accounts for 1/3 and foodstuffs 50% of the inflation in Azerbaijan,” he noted.
He added that the current rate of inflation is not considered hazardous and economic projects in the country prevent the risks.
“The President set target to maintain macroeconomic stability. Low inflation underlies this. Non-monetary factors are around 10% in weight. The rest 90% are structural inflation, we see. We have to set our priorities in anti-inflation policy,” he underscored.
He also said that amendment to the expenditures of the state budget will not bring new pressures. “Because this comes as a result of effective collection of taxes and custom but not through internal potential and petrodollars,” he underlined. /APA-Economics/