Baku:The Central Bank of Azerbaijan (CBA) has announced adjustments to its inflation forecast, lowering expectations for 2026 while raising them for 2027, as reported by APA-Economics.
According to Azeri-Press news agency, the CBA’s updated October forecasts indicate that annual inflation is projected to be 5.9% at the end of both 2026 and 2027. This revision reflects a decrease of 0.2 percentage points for 2026 and an increase of 0.1 percentage points for 2027 compared to the July forecasts, which were previously set at 6.1% and 5.8%, respectively.
The CBA’s announcement highlighted that the forecasts assume stability in state-regulated prices and tariffs under the baseline scenario. Inflation risks are primarily linked to the international environment, with concerns about global geopolitical uncertainty potentially leading to higher energy and food prices. These increases could be transmitted to domestic prices through major trading partners. Additionally, the CBA noted that annual inflation in September had decreased by 0.2 percentage points from August, reaching 5.5%, while annual core inflation was at 4.9%. The bank’s inflation target remains at 4±2%.