The FINANCIAL — According to abc.az., the measures taken by the government and the National Bank of Azerbaijan (NBA) on keeping inflation processes in country’s economy do not bear anything. Inflation processes in country’s economy only strengthen.
The National Bank of Azerbaijan informed that in July 2008 consumer inflation (in annual calculation) in the country totaled 20.8% versus 20.2%, 19.2% in May, 17.8% in April, 16.5%in March, 15.7% in February, 15.3% in January 2008, 16.7% for the whole 2007, 17% in January, 16.7% in February and 16.6% last March and 8.3% in December 2006.
For 2008 Ministry of Economic Development forecast inflation at the level up to 13% and the forecast has exceeded by 7.2%. The IMF forecasts average inflation in the country at the level of 19.6% for the year and 22% by the end of the year.
To avoid so called imported inflation caused by factual connection of the national currency to USD (the rates of all other currencies are calculated through cross rate of US currency) Azerbaijan has only switched to support of exchange rate by parity with bicurrency basket consisting of dollar and euro (70% and 30%) but the measures have not given any results yet.
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