Baku: The Central Bank of Azerbaijan (CBA) has released its inflation forecast for the years 2025-2026, indicating that annual inflation will remain within the target range.

According to Azeri-Press News Agency, the CBA has highlighted several external and internal factors influencing inflation trends.

The CBA emphasized the role of global trade developments in causing fluctuations in commodity and financial markets. It noted that rising inflation in key trading partner countries, a declining dollar index, and a slow strengthening of the nominal effective exchange rate are significant external risk factors. On the domestic front, potential contributors to inflation include cost-related elements and significant growth in aggregate demand.

The CBA also mentioned that it is closely monitoring the possible impacts of credit activity on aggregate demand and pricing. Despite these risks, the CBA assessed the contribution of internal factors to inflation forecasts for 2025-2026 as low. It reaffirmed that, based on the baseline scenario, the prediction for annual inflation to stay within the target range remains unchanged for the forecast period.