Last month annual inflation in Azerbaijan was 1.7%. This indicator was 12.5% in January of 2022 and 13.6% in January of 2023.

The Ministry of Economy of Azerbaijan told Paralel.Az-Economics regarding what influenced the sharp decline in annual inflation in Azerbaijan last month.

According to the Ministry, within 2023, inflation continued to decline in Azerbaijan compared to the previous year: “Thus, in December of 2023, the annual inflation for total products and services decreased by 12.3% points compared to the corresponding indicator of the previous year and amounted to 2.1%. In December of 2023, annual inflation for food products was 0.8%, for non-food products 2.7%, and for paid services 3.7%. The decrease in inflation continued in 2024 as well and this indicator decreased to 1.7% in January of this year.”.

The Ministry also noted that at the same time, the average annual inflation during 2023 (a decrease of 5.1% points compared to the indicator of 2022) was 8.8 %: “The relative decrease in inflation among trading partners, the decrease in prices in world commodity markets, maintenance of balance in the currency market in the condition of a surplus balance of payments, strengthening of the nominal effective exchange rate of the manat, the anti-inflation measures implemented by the government had a decline effect on inflation. In addition to the mentioned above, the continuation decline in global commodity, energy, and food prices has had a declining effect on inflation by limiting inflationary imports to the country.

The encouragement of domestic production of essential daily necessities, as well as, the implementation of the complex measures envisaged in the orders issued by the Cabinet of Ministers ”On urgent measures related to the strengthening of anti-inflationary measures in the Republic of Azerbaijan” and “On additional measures to strengthen monitoring of inflation and prices” to minimize the effects of inflation on business activity and the social welfare of the population by protecting the formation of prices in the country based on market principles also had a decline effect on inflation.”