IMF lowers Azerbaijan inflation outlook for next two years

The International Monetary Fund (IMF) forecasts average annual inflation in Azerbaijan at 6% in 2026, with a slowdown to 5.1% in 2027, Report informs, citing the IMF's April World Economic Outlook.

Compared to February estimates, the inflation forecast for 2026 has been raised by 0.8 pp, and for 2027 by 1.1 pp.

Average annual inflation in Azerbaijan in 2025 stood at 5.6% compared to 2.2% in 2024.

According to forecasts by Azerbaijan's Ministry of Economy, average annual inflation in the country will amount to 4.8% in 2026 and 4.5% in 2027. According to the latest forecasts of the Central Bank of Azerbaijan (February 2026), annual inflation this year will be 5.5%, and in 2027, 4%.

The UN, in turn, forecasts inflation in Azerbaijan at 3.1% this year. The World Bank expects average annual inflation in Azerbaijan at 2.3% in 2026, while the Asian Development Bank projects 5.7% in 2026 and 4.9% in 2027.

International rating agency Moody's forecasts average annual inflation in Azerbaijan this year at 3%, and Fitch Ratings at 4.6%.

The largest banking group in the Netherlands, ING Group, forecasts annual inflation in Azerbaijan at 5% in 2026 and 5.5% in 2027.