11:52 - 4.02.2026

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February 4, Fineko/abc.az. According to the baseline scenario of the Central Bank of Azerbaijan, annual inflation is projected to be within the target by the end of 2026 and in 2027.

ABC.AZ informs that this was discussed at the CBA meeting on the discount interest rate. Thus, according to forecasts for February 2026 on the baseline scenario, annual inflation in 2026 will be 5.5% and in 2027 - 4.0%. The inflation forecast for 2026 has been changed downward. While in October, inflation was expected to reach 5.7% in 2026, in line with this forecast.

By CBA Board’s decision, all the parameters of the interest rate corridor were cut by 0.25 p.p. The discount rate has been cut to 6.5%, the lower limit of the interest rate range - 5.5%, and the upper limit of the interest rate range - 7.5%.

It was noted that when deciding on the interest rate range, the basis was based on the correspondence of actual and projected inflation to the target range (4±2%), global economic activity and the current situation in international financial markets, the main trends observed in domestic macroeconomic conditions, as well as the transfer of monetary policy decisions to financial markets and the real the sector.

Currently, annual inflation continues to remain within the target range. Over the past 2 months, there has been a downward trend in the dynamics of inflation. In December 2025, 12-month inflation was 5.2%. Prices increased year-on-year: for food, alcoholic beverages and tobacco products - by 6.4%, for paid services - by 5.7%, for non-food products - by 2.5%. Annual core inflation was 4.8% in December 2025, indicating that the constant part of inflation is close to the target. Actual inflation is mainly influenced by external and internal cost factors.