in January 2022, inflation in Azerbaijan amounted to 12.5%. This was stated by the State Committee on Statistics. Experts believe that, in fact, inflation is twice as high and reaches 25%.
The Azerbaijan State Committee on Statistics has announced the main economic indicators for January 2022. Thus, according to the government, compared to January 2021, last month’s inflation in Azerbaijan amounted to 12.5%. In other words, goods, and services that used to cost AZN 100 [about $58.8] in January 2021, cost AZN 112.5 [about $66.2] in January 2022.
The State Statistics Committee clarifies that over the year, food, drinks, and tobacco products increased in price by 17.1%, non-food products – by 5.9%, and services – by 11.1%.
Taking into account official data on annual inflation for the last six years, (i.e. since the last devaluation of the national currency), the manat has lost 50% of its purchasing power.
Independent experts claim that, in fact, inflation is twice as high as the official figure.
Expert commentary
“Officially, inflation in January was 12.5%, and 17.1% for products – these are the official figures.
Rising prices put pressure on people, every resident of the country feels it. The government should think about it – the rise in prices and inflation make people’s lives unbearable”, Natik Jafarli, an economist and one of the leaders of the Republican Alternative opposition party, comments on the State Statistics Committee’s report.
“Such high inflation has other side effects. In banks, deposits from citizens are accepted at a rate of 8-10““% per annum, and inflation is 12.5%. In other words, this is a mockery of the citizens of the country, it’s like getting into their pockets through the banking system.
If inflation does not stop, people will withdraw their money from the banks and look for ways to save it without loss. This will lead to an increase in investments in the real estate markets of Turkey and Georgia.
Last year, real estate prices in dollars in Turkey rose by five to six percent. And it is more profitable for Azerbaijani citizens to withdraw their savings from banks that offer only 8-10% per annum in manats (which is lower than inflation), convert them into US dollars and buy real estate in Turkey to save their money from cheapening.
A serious increase in inflation in the country not only makes people even poorer but also creates serious stress for the banking system”, the expert noted.
