Page 24 - Caucasus Outlook 2024
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2.3.3 Inflation and monetary policy
The latest official figure for y/y inflation in Azerbaijan is from November 2023, which stands at 14.4%. This is significantly higher than the average inflation target of 4% set by the Central Bank of Azerbaijan.
According to the IMF, following a dramatic surge to 14.4% in December 2022, Azerbaijan's inflation experienced a remarkable downward trend, reaching a moderate 3.9% by October 2023. This significant decline, driven by broad-based price easing across food, non-food, and services categories, brought inflation squarely within the central bank's target range of 4±2%. The IMF projects year-end inflation in Azerbaijan for 2023 to be around 9.4% on average, with December's inflation potentially reaching near the lower range of 11-12%. The World Bank also estimates inflation in Azerbaijan to be around 10% for the full year of 2023.
2.3.4 Industrial production
The nominal volume of industrial production in Azerbaijan for January-November amounted to AZN60.8bn ($35.7bn), the real decline is
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