BAKU, Azerbaijan, May 24. The consumer price index in Azerbaijan increased by 13.9 percent In 2022 compared to 2021, Trend reports.
According to the Accounting Chamber’s data, the consumer price index exceeded the forecast by 1.4 percentage points.
Double-digit growth was recorded in all groups of the consumer basket in 2022. The greatest pressure on inflation was recorded in the group of food products. The products included in this group rose in price by 19.5 percent at an average annual estimate.
“Deflation was recorded only in June, the monthly inflation rate peaked in September 2022, and prices for goods and services grew by an average of 1.1 percent every month throughout the year during the period under review. Tracking the difference between actual and forecast inflation rates affected the fulfillment of budget parameters, especially revenues, and created the possibility of exceeding the forecast for this parameter," the Chamber said.
Core inflation, calculated without taking into account goods and services whose prices are regulated by the state, as well as seasonal agricultural products, amounted to 11.7 percent in average annual terms last year.
Moreover, the price index for imported products increased by 22.2 percent, the producer price index in the non–oil and gas industry – by 17.2 percent, in agriculture – by 15.9 percent, public transport services - by 15.9 percent, the growth of postal and courier services amounted to 50.7 percent.
Demand activity in the domestic market increased due to state budget expenditures by 17 percent, including current expenditures by 6.9 percent.
"According to the Central Bank of Azerbaijan (CBA), the monetary base in the national currency in 2022 increased by 12.1 percent (excluding term deposits) and amounted to 17.5 billion manat ($10.2 billion). The main factors that influenced the growth of the monetary base were changes in the balance of the single treasury account, as well as sterilization operations carried out by the CBA,” the Chamber said.
“Against the background of a stable exchange rate of the manat against the dollar, a reducing effect on inflation has been proven. Thus, the nominal effective exchange rate of the manat in the non-oil sector strengthened by 8.4 percent in 2022," the Accounting Chamber added.
