BAKU, Azerbaijan, August 10. The consumer price index in Azerbaijan grew by 5.7% from January through July 2026 compared to the same period last year.
This was announced in a report published by the State Statistics Committee.
From January through June 2026, the country’s consumer price index rose 5.7% year-on-year, including 6.7% for food, beverages, and tobacco products, 3.8% for non-food goods, and 5.7% for paid services provided to the population.
Meanwhile, the Central Bank of Azerbaijan (CBA) primarily linked the upward revision of the inflation forecast to external factors.
The CBA Chairman, Taleh Kazimov, announced at a press conference held on July 31 on the interest rate corridor parameters that several key factors are taken into account when preparing inflation and economic growth forecasts. Actual trends in both inflation and economic growth directly affect forecast indicators.
According to him, the upward revision of the inflation outlook is primarily linked to external factors, including higher inflation in Azerbaijan's main trading partner countries.
"The upward revision of the inflation forecast is mainly due to factors of external origin. In this regard, the increase in inflation in countries that are Azerbaijan's main trading partners plays an important role," said Kazimov.
The CBA chairman pointed out that expectations of slower growth in the nominal effective exchange rate compared with the same period of the previous year have also affected inflation forecasts.
According to him, the nominal effective exchange rate is considered a factor that reduces inflation, but a slowdown in its growth rate weakens this effect.
Kazimov added that economic growth forecasts are also influenced by a slowdown in actual economic growth and changes in the economy's potential growth capacity.
The CBA chief emphasized that the decomposition of inflation forecasts takes into account government consumption, household consumption, fixed capital investment dynamics, and other macroeconomic indicators.
