BAKU – Seasonal factors contributed to inflation in Azerbaijan during the first half of 2024, affecting price trends alongside external economic influences. The Chamber of Accounts reported that average annual inflation by the end of the year is expected to exceed forecasts, based on an analysis of state budget parameters for January to June, as noted by APA-Economics.
According to Azeri-Press News Agency, inflation averaged 0.7% during the first half of 2024, marking a 12.0 percentage point decrease compared to the same period last year. The highest price increases were seen in services, rising by 2.4%, while food products experienced a 0.6% decline. Core inflation, excluding regulated products and services as well as seasonally affected agricultural goods, stood at 1.0% on an average annual basis.
Despite the reduction of the average annual inflation forecast from 5.3% to 2.7% during a revision of the 2024 state budget, the report indicates that inflation at year-end will likely exceed this estimate. Rising state-regulated prices for certain products and services, along with increased government spending as a result of the budget revision, are expected to accelerate inflation in the coming months.