Inflation forecast for 2026 announced

The Central Bank of Azerbaijan (CBA) expects that the annual inflation by the end of 2025 and in 2026 will remain within the target range.

As BAKU.WS reports with reference to the CBA, according to the October forecast for the base scenario, the inflation rate in 2025 will be around 6%, and in 2026 - 5.7%. The upward revision of indicators is mainly related to the impact of supply factors on the market.

The Central Bank noted that the main external risk to price stability remains the dependence of domestic inflation on the dynamics of import prices, which, in turn, are determined by inflationary processes among trading partners and changes in the manat exchange rate. Global economic instability continues to cause fluctuations in commodity and financial markets.

Among internal factors, the CBA highlights that inflation in the upcoming period will be formed mainly under the influence of costs and supply factors. At the same time, preliminary budget parameters for 2026 and the slowdown in lending rates reduce the risk of excessive growth in aggregate demand.