World Bank: Food inflation growth slows down in Azerbaijan

The CBA further ramped up liquidity absorption operations to counter inflationary pressures, Report informs, citing World Bank's Azerbaijan Monthly Economic Update – December 2022.

According to WB, the CBA continued to increase the issuance of its notes to reduce liquidity in the banking sector, with the note portfolio increasing by 30 percent in November (mom), to reach 8 percent of the monetary base:

"Annual inflation stabilized at 15.6 percent in October, which remains well above the Central Bank of Azerbaijan's (CBA) target of 4 +/-2 percent. The CPI rose by 1.6 percent (mom) in October, down from 3.4 percent (mom) in September.

"The moderation in inflation was broad-based, with food inflation easing to 2.2 percent (mom). Non-food and service inflation also slowed, increasing by 1.3 percent (mom) and 0.9 percent (mom), respectively," the bank said.