BAKU, Azerbaijan, September 23. Annual inflation in Azerbaijan is within the target range and is tracking the forecast trajectory of the baseline scenario.
This was reflected in a statement by the Central Bank of Azerbaijan (CBA).
"In August 2026, 12-month inflation stood at 5.7%, which is 0.1 percentage points lower than the corresponding figure in July. Annual price growth was 7.2% for food products, alcoholic beverages, and tobacco products; 5% for paid services; and 3.7% for non-food products. Annual core inflation was 5.1%. The Central Bank's forecast that annual inflation will remain within the target range over the medium term remains unchanged," the statement noted.
The statement emphasized that there have been no significant changes in the balance of risks regarding inflation since the last meeting.
"Amid global geopolitical uncertainty, the rise in energy and food prices—as well as the risk of this increase being passed through from key trading partners to domestic prices—remains significant. The extent of this pass-through will depend, among other factors, on the dynamics of the manat's nominal effective exchange rate. Any potential revision to the Central Bank's inflation forecasts in the coming period will largely depend on the scale at which these risks materialize. Under current fiscal and monetary policy conditions, domestic demand is not expected to drive up inflationary pressures," the statement noted.
Data regarding inflation in Azerbaijan was also presented in an analytical review by the Dutch banking group ING.
"Current inflation in Azerbaijan remains stable at the 5.6–5.8% level, which falls within the 4% ± 2% target range," ING said.
According to ING analysts, given the rising inflation and interest rates globally and in the region, the Central Bank of Azerbaijan (CBA) may place greater emphasis on inflation risks in its commentary. The bank also did not rule out the possibility that the regulator might signal a tighter monetary policy stance in the future.
