In the first half of this year, in Azerbaijan, seasonal factors also affected inflation, which weakened mainly amid external factors, and it was concluded that the average annual inflation at the end of the year will exceed the forecast, this was stated in the report of the Chamber of Accounts of Azerbaijan on the analysis of the parameters of the state budget executed for the January-June months of 2024, Paralel.Az-Economics reports.

According to the report, in the first half of the year, the average annual inflation was 0.7%, it decreased by 12.0 percentage points compared to the corresponding period of last year. The highest price increase was recorded for services (2.4%), and a 0.6% depreciation was observed for food products. Core inflation, calculated without taking into account products and services which prices are regulated by the state, as well as agricultural products of a seasonal nature, was equal to 1.0% in the average annual assessment, which allows us to say that seasonal factors also play a role in the price decrease.

During the revision of the 2024 state budget, the average annual inflation forecast was reduced from 5.3% to 2.7%. The analysis allows us to say that the average annual indicator at the end of the year will be higher than the forecasted figure. Thus, the increase of some products and services which prices are regulated by the state, as well as the increase of the state budget expenses as a result of the revision, raise the probability that the price increase will be relatively accelerated in the upcoming months.