BAKU, Azerbaijan, December 10. At present, Azerbaijan's annual inflation is progressing in accordance with the anticipated trajectory and remains within the established target range, Trend reports via the Central Bank of Azerbaijan.
Meanwhile, in October 2025, 12-month inflation stood at 5.9%.
According to the information, annual price growth was 8.2% for food, alcoholic beverages, and tobacco products, 5.6% for paid services, and 2.5% for non-food items. Annual core inflation was 5%. External and internal cost factors mainly influence actual inflation.
“According to the baseline scenario, the annual inflation forecast within the target range by the end of 2025 and in 2026 remains unchanged. Analysis of recent trends shows that the inflation forecast for next year is likely to be revised downward,” the information notes.
“An analysis of changes in the balance of inflation risks since the last meeting shows that upside risks have declined somewhat. However, geopolitical tensions and instability in the global trading environment continue to fuel high uncertainty in commodity and financial markets. The main external risk is related to the pass-through of import prices to domestic inflation. This risk will depend on inflationary processes among trading partners and the dynamics of the nominal effective exchange rate. Domestic risk factors are mainly driven by supply-cost factors. The initial parameters of the state budget until 2026 and the slowdown in the annual growth rate of credit investments reduce the risk of excessive growth in aggregate demand," the report says.