BAKU, Azerbaijan, July 31. Annual inflation is within target and moving in line with the forecast trajectory under the baseline scenario.
This is reflected in a report by the Central Bank of Azerbaijan (CBA).
According to the report, in June 2026, 12-month inflation was 5.8%. The annual price increase was 7.1% for food products, alcoholic beverages and tobacco products, 5.6% for paid services, and 3.8% for non-food products. Annual core inflation was 5.5%.
"The CBA forecasts that annual inflation will be within the target in the medium term. Thus, according to the July forecasts under the base scenario, annual inflation is expected to be 6.1% at the end of 2026, 6% 12 months later (i.e. in June 2027), and 5.8% at the end of 2027. Thus, annual inflation is expected to return to the target from the second half of 2027. The deviation of inflation expected by the end of 2026 from the target is at the level of forecast error. The change in the inflation forecast towards an increase is mainly due to the intensification of the effects of direct and indirect external cost factors, which is not permanent in the medium term," the report noted.
