BAKU, Azerbaijan, July 31. Inflation is expected to be 4.4% in Azerbaijan in June 2028, Chairman of the Central Bank of Azerbaijan (CBA), Taleh Kazimov, said at a press conference held today on the interest rate corridor parameters, Trend's correspondent reports from the event.
"The inflation is projected to be 6.1% by the end of 2026, and 5.8% in 2027," the chairman stressed.
According to Kazimov, 12-month inflation in June 2026 was 5.8%. Annual price growth for food products, alcoholic beverages, and tobacco products was 7.1%, for paid services 5.6%, and for non-food products 3.8%. Annual core inflation stood at 5.5%.
"As in previous years, inflation this year was driven primarily by external factors and supply-side cost factors. Looking at external supply-side factors, the most notable is the weighted average inflation among trading partners. At the end of March, this figure stood at 7.7%, which had an upward impact on national inflation of 2.84 percentage points.
Regarding supply-side cost factors, I would like to highlight the agricultural producer price index. For the past period of 2026, this index increased by 3.8%. This had an upward impact on inflation of 1.6 percentage points.
Looking at demand factors, I would like to highlight public sector and household consumption. According to March results, these indicators increased year-on-year by 10.3% and 7.4%, respectively. Taken together, this had an upward impact on inflation of approximately 2 percentage points," Kazimov added.
