Azerbaijani Central Bank's forecast on inflation remains within target range
Forecast on inflation in Azerbaijan has remained within the target range, according to the Central Bank (CBA).
According to the CBA, the official statistics showed that the consumer price index in February 2021 rose by 1.6 percent compared to the previous month and by 4.2 percent over the year. The inflation was primarily influenced by the rise in world prices for goods and some administrative prices. The role of the rise in prices for non-food products and services in inflation has relatively grown.
The average annual core inflation, calculated excluding products and services, prices for which are regulated by the state, as well as agricultural products of a seasonal nature, in the first two months of 2021 amounted to 2.1 percent, said the bank.
Besides, the CBA stated that no significant changes in the inflationary expectations have taken place. According to the results of monitoring of enterprises in the real sector, the inflation expectations in the sectors of trade and services for February of this year remained stable in monthly terms. Inflationary expectations in the non-oil industry declined relatively after the January growth, while the downward tendency in the price expectations continued in the construction sector.
According to the updated forecasts, inflation is expected to form in March within the announced target range, taking into account the current monetary policy.