Central Bank of Azerbaijan's inflation forecast remains within target range

Finance Materials 18 June 2021 22:07
Baku, Azerbaijan Trend News Agency Sadraddin Aghjayev
Central Bank of Azerbaijan's inflation forecast remains within target range

No noticeable changes have been observed in the balance of inflation risks since the recent meeting of the Board of the Central Bank of Azerbaijan (CBA), Trend reports with reference to the CBA.

The factors that have a downward and an upward impact on inflation continue to balance each other in the mid-term forecast.

The CBA stressed that the improvement in the international environment, in particular, the upward trend in oil prices, maintains currency stability.

The restrictive influence of aggregate demand and economic activity on inflation is gradually being removed.

Such factors as the trend of rising prices in the world food market and administrative regulation of prices exert an increasing influence on inflation.

Further decisions on the parameters of the interest rate corridor will be made taking into account actual and projected inflation, the dynamics of core inflation and the processes of economic recovery.

Depending on the macroeconomic situation, the possibilities of continuing the process of easing monetary policy will be assessed, the CBA said in a statement.

Food prices in Azerbaijan decreased by an average of 0.3 percent in May while the annual food inflation amounted to 5.2 percent.

According to the CBA, the consumer price index remained stable in May, the inflation rate for 12 months reached 4.9 percent.

The CBA board made a decision to keep the interest rate at 6.25 percent on June 18.

At the same time, the lower limit of the interest rate corridor was set at 5.75 percent while the upper limit at 6.75 percent.