Baku: The Asian Development Bank (ADB) has kept its inflation forecast for Azerbaijan unchanged, APA-Economics reports. This decision was revealed in the Bank's July outlook, which continues to predict inflation rates at 5.7% for the current year and 4.9% for 2027, consistent with the figures from the Bank's April forecast.

According to Azeri-Press News Agency, the ADB has also maintained its inflation forecasts for Kazakhstan, Turkmenistan, and Uzbekistan for both 2026 and 2027. However, the inflation forecast for the broader Caucasus, Central, and West Asia region has been adjusted upwards to 22.0% for 2026, while the 2027 forecast remains at 16.3%. The upward revision for 2026 is attributed to ongoing price pressures resulting from the Middle East crisis, a slower-than-expected decline in inflation in Trkiye, and a general rise in fuel prices.

The ADB highlighted that Armenia's inflation forecasts for both 2026 and 2027 have been revised upwards due to supply chain disruptions and increasing energy costs. While Russia's restrictions on selected Armenian exports might alleviate some price pressures by boosting domestic food supply, inflation in Armenia reached 4.5% from January to May. Meanwhile, Georgia's inflation forecast for 2026 has been increased to 4.9%, driven by conflict-related surges in energy, transport, and production costs, with the 2027 forecast unchanged.

The ADB's outlook also noted an increase in Trkiye's inflation forecast for 2026 to 29.7%, attributing this to a slower-than-expected decline in inflation despite stringent monetary policies and persistently high commodity prices. The forecast for 2027 remains steady at 21.5%, reflecting the ongoing economic challenges in the region.