Azerbaijan's Central Bank explains reasons for revising inflation forecast

Azerbaijan’s Central Bank has revised its inflation outlook, projecting 5.9% inflation for 2026—0.2 percentage points lower than the July forecast, Governor Taleh Kazimov said at a press conference on Thursday. The downward revision is linked to a slower-than-expected growth rate in the agricultural producer price index. For 2027, the forecast was raised by 0.1 percentage points from the previous estimate, mainly due to expected higher inflation among trading partners. Kazimov emphasized that external price dynamics are a key factor for Azerbaijan. He pointed to higher global energy and food prices tied to the Middle East conflict, which boosted inflation in partner countries and, through imports, in Azerbaijan as well.