Fitch Solutions (FS) forecasts Azerbaijan’s annual inflation to stay below 5% over the next decade.
The country's average inflation over the past ten years was 5.5%. While high food prices and the Russia-Ukraine war continue to exert pressure, inflation is expected to ease gradually.
FS projects inflation at 4% in 2025, rising to 4.7% by 2027, then slowing to 2.7% in 2029 and 0.1% by 2034. The exchange rate is expected to remain stable, supported by steady oil and gas revenues.
The Central Bank of Azerbaijan (CBA) targets inflation at 4±2% and relies on exchange rate control for price stability. Unlike the sharp devaluation in 2015, CBA is now in a stronger position, though high dollarization (48.4% of deposits in foreign currency) limits monetary policy effectiveness.
A four-year plan aims for inflation targeting by 2026, potentially increasing exchange rate flexibility.
Azerbaijan has summoned Russia’s envoy in Baku to protest the deadly raids targeting Azerbaijani nationals in Yekaterinburg, demanding a full investigation and accountability.
Azerbaijani media representatives have recently completed a visit to China to strengthen media relations between the two countries. This visit took place in Shanghai and Beijing, offering insights into the Chinese media sector. Here are the highlights from their trip.
President Ilham Aliyev received the credentials of Iran’s newly appointed ambassador Mojtaba Demirchilou, highlighting the strengthening of Azerbaijan-Iran relations and discussing broad prospects for cooperation across multiple sectors.
Azerbaijan’s top general observed major drills in Türkiye and met senior Turkish defence leaders, underscoring the allies’ growing military partnership.
Azerbaijan and China have deepened energy cooperation, with new agreements signed to advance green energy initiatives and improve Azerbaijan’s electricity transmission system in line with its renewable energy targets.
Ukraine's Security Service carried out overnight airstrikes on a Russian military airfield in occupied Crimea, reportedly destroying three helicopters and a key air defense system.
A former Venezuelan military intelligence official has pleaded guilty in the United States to drug trafficking and narco-terrorism charges, concluding a two-year legal process following his extradition.
Azerbaijan has summoned Russia’s envoy in Baku to protest the deadly raids targeting Azerbaijani nationals in Yekaterinburg, demanding a full investigation and accountability.
Iran has barred the UN nuclear watchdog’s chief from entering the country and suspended camera installations at its nuclear facilities, escalating tensions over transparency following recent military clashes.
Iran launched 18 ballistic missiles late Sunday targeting the U.S. military’s Al-Udeid Air Base in Qatar, the largest American installation in the Middle East.
The U.S. economy faces a 40% risk of recession in the second half of 2025, JP Morgan analysts said on Wednesday, citing rising tariffs and stagflation concerns.
Severe rain in Venezuela has caused rivers to overflow and triggered landslides, sweeping away homes and collapsing a highway bridge, with five states affected and no casualties reported so far.
The U.S. Embassy in Qatar has advised American citizens to shelter in place amid rising tensions between Israel and Iran, as part of a broader global security alert issued by Washington.
China has ramped up efforts to protect communities impacted by flood control measures, introducing stronger compensation policies and direct aid from the central government.
Azerbaijan has summoned Russia’s envoy in Baku to protest the deadly raids targeting Azerbaijani nationals in Yekaterinburg, demanding a full investigation and accountability.
Iran has barred the UN nuclear watchdog’s chief from entering the country and suspended camera installations at its nuclear facilities, escalating tensions over transparency following recent military clashes.
The UN has welcomed a U.S.-brokered peace deal between the Democratic Republic of the Congo and Rwanda, calling it a major step toward regional stability.
President Ilham Aliyev received the credentials of Iran’s newly appointed ambassador Mojtaba Demirchilou, highlighting the strengthening of Azerbaijan-Iran relations and discussing broad prospects for cooperation across multiple sectors.
Ukraine's Security Service carried out overnight airstrikes on a Russian military airfield in occupied Crimea, reportedly destroying three helicopters and a key air defense system.
A former Venezuelan military intelligence official has pleaded guilty in the United States to drug trafficking and narco-terrorism charges, concluding a two-year legal process following his extradition.
Azerbaijan has summoned Russia’s envoy in Baku to protest the deadly raids targeting Azerbaijani nationals in Yekaterinburg, demanding a full investigation and accountability.
Iran has barred the UN nuclear watchdog’s chief from entering the country and suspended camera installations at its nuclear facilities, escalating tensions over transparency following recent military clashes.
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