Inflation Forecast for 2011

 Inflation could be contained at single digits in Azerbaijan in 2011 even if price hikes in world markets announced Azerbaijani Government; "The increase is predicted to range around 5,7 % under the 2011 budgetary package," 
"The statement by the Economic Development Ministry that inflation will not exceed single digits in 2011 made despite projections that we will have double-digit inflation is surprising," head of the Center for Economic and Social Development (CESD) Vugar Bayramov said. 
"Another thing that is surprising is that this forecast comes at a time prices are rallying in world markets," the analyst said.

He maintained that the ministry erroneously enumerated the facts underlying inflationary increases. 
"Price hikes are not due to those in world markets or the increase in prices for energy alone. The main reason for that is artificial price rises in the country. The situation in that respect is increasingly deteriorating, and such increases are basically not being countered," Bayramov concluded.

CESD predicts 12 % annual inflation rate for 2011.