Azerbaijan Inflation Rate Slows for 3rd Month

Azerbaijan's consumer prices fell 0.3% month-on-month in June 2026, reversing a 0.1% increase in May. The decline was primarily driven by a 0.7% drop in prices for food, alcoholic beverages, and tobacco, following a 0.1% decrease in the previous month. Food prices alone fell 0.8%, mainly reflecting lower prices for fresh fish, eggs, and fruit. Meanwhile, non-food prices rose 0.1% for a second consecutive month, supported by higher prices for furniture, motor oil, passenger cars, and mobile phones, although cheaper household appliances partly offset these increases. Services prices also edged up 0.1%, driven by higher costs for international air transport and domestic tour packages. On an annual basis, inflation accelerated to 5.8% in June from 5.6% in May, reaching its highest level in eight months.

Azerbaijan's monthly inflation eased to 0.1% in May 2026, slowing for a fourth consecutive month and marking the lowest level in ten months, down from 0.3% in April. Contributing to the slowdown was a cooling in food inflation, which declined by 0.1% after a 0.3% increase in the prior month, namely buckwheat, beef and mutton, sausage and cheese products. Inflation for alcoholic beverages stood at 0.2% and tobacco prices remained unchanged. Non-food products also moderated, increasing 0.1% following 0.2% increase, mainly for paint, plastic pipes, detergents and personal hygiene products. Meanwhile, paid services prices eased to 0.2% from 0.3%, despite price increases for international passenger transportation services by air. On an annual basis, consumer prices increased 5.6%, slightly up from 5.5% in April.

Azerbaijan’s monthly inflation slowed for a third consecutive month to 0.3% in April 2026, the lowest reading in five months, compared with 0.5% in March. The moderation was driven by a sharp slowdown in food, alcoholic beverages, and tobacco prices, which rose 0.3% after increasing 1% in the previous month. Non-food product prices edged up 0.2%, the same as in March, with increases in items such as cement, sawn timber, furniture, and detergents, while jewellery prices declined. Services inflation ticked up slightly to 0.3% from 0.2%, as higher costs for dental care and restaurant and café services were partly offset by lower prices for international air passenger transport. On an annual basis, consumer prices rose 5.5%, the weakest pace in four months, down from 5.6% in March.