12:48 - 25.09.2019

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September 25, Fineko/abc.az. Due to the decrease in inflation on imported goods amid maintained stability of the exchange rate on an ongoing basis, inflation rate dropped from 3.0% in the first half of 2019 to 2.5% for the corresponding period of the previous year.

According to ABC.AZ, this is stated in the “2019 Asia Development Overview Report”.

According to the report, food prices rose by 2.7%, other goods by 1.3%, services by 3.2%. Given the weakening inflation in the first half of the year, the Central Bank gradually lowered the interest rate from 9.75% in February 2019 to 8.25% in July of that year. As a result of the possible impact of the projected fall in world food prices in 2019, they will be compensated by an increase in wages and demand, thus, in connection with this, the forecast inflation rates for 2019 will be reduced. Despite the fact that food prices in 2020 are expected to return to the previous levels, forecast indicators are also falling due to accelerated inflation in 2020, since aggregate demand growth is expected to weaken.
Posted by Elmir Murad