BAKU, Azerbaijan, June 24. The Central Bank of Azerbaijan (CBA) has said its forecast for annual inflation to remain within the target range in both the current and next year is unchanged, although it noted rising external cost pressures.
According to the CBA, recent changes in the global economic environment have increased the likelihood of external inflation risks.
“In a rapidly changing global environment, the increase in world food and fertilizer prices, higher transport and logistics costs, the expansion of imported inflation from trading partner countries, and the slowdown in the strengthening of the nominal effective exchange rate may increase external risk factors for inflation,” the bank said, adding that it is conducting in-depth analysis to assess the sustainability of these factors.
At the same time, the Central Bank noted that the risk of excessive domestic demand expansion remains low under current fiscal and monetary conditions.
Inflation continues to remain within the target range and is broadly aligned with the forecast trajectory under the baseline scenario. In May 2026, 12-month inflation stood at 5.6%. Annual price growth was recorded at 6.6% for food products, alcoholic beverages and tobacco, 5.7% for paid services, and 3.9% for non-food goods. Annual core inflation also stood at 5.6%.
