The World Bank (WB) projects that inflation in Azerbaijan will be 2.3% in 2025, maintaining this level in 2026, according to Report.

By 2027, inflation is expected to decline slightly to 2.2%, with further reductions to 2% in 2028-2029.

The Central Bank of Azerbaijan (CBA) has set an inflation target range of 4±2%, while the Ministry of Economy anticipates annual inflation at 4.6% in 2025 and 4% in 2026.

In its January 2025 forecast, the CBA estimated inflation at 5.5% for the year, followed by a decrease to 3.8% in 2026.

Meanwhile, the UN predicts inflation in Azerbaijan will be 3.6% this year and 3.1% in 2026. International rating agencies S&P Global and Moody’s estimate average annual inflation at 4% in 2024 and 3% in 2025.

Fitch Solutions forecasts inflation at 4% in 2025, accelerating to 4.4% in 2026. Additionally, ING Group, the largest banking group in the Netherlands, projects an average inflation rate of 5.2% in 2025 and 4.9% in 2026 in Azerbaijan.

Last year, Azerbaijan recorded an average annual inflation rate of 2.2%, while in January 2025, it stood at 5.4%.