BAKU, Azerbaijan, October 22. Annual inflation in Azerbaijan is currently moving close to the projected trajectory, Trend reports via the Central Bank of Azerbaijan (CBA).
In September 2025, 12-month inflation amounted to 5.7 percent. The annual price increases amounted to 7.9 percent for food products, alcoholic beverages and tobacco products, 5.3 percent for paid services, and 2.4 percent for non-food products. The annual core inflation was 4.9 percent.
According to the baseline scenario, annual inflation is projected to be within the target by the end of 2025 and in 2026.
Thus, according to the October forecasts under the baseline scenario, annual inflation is expected to be six percent in 2025 and 5.7 percent in 2026.
The upward revision of the inflation forecast is mainly due to supply factors.
"The balance of risks to inflation hasn't significantly changed since the last meeting. Instability in the global trade environment continues to cause fluctuations in commodity and financial markets. The impact of import prices, which are the main external risk source, on domestic inflation is related to inflation processes in trading partners and the dynamics of the nominal effective exchange rate.
Regarding domestic risk factors, it should be noted that the updated forecasts indicate that inflation in the coming period will be formed mainly due to supply-cost factors. The initial parameters of the state budget by 2026 and the slowdown in the annual growth of credit investments reduce the risk of excessive growth in aggregate demand," the CBA said.
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