Elman Eminov: Inflation in Azerbaijan remains at 6% due to balance of opposing factors

The high current account surplus observed in Azerbaijan, driven by persistently high energy prices, does not automatically translate into a proportional increase in the countrychr("39")s state reserves, Elman Eminov, Chief Economist of the PASHA Holding group of companies, said during the ongoing "Fitch on Azerbaijan 2026" event in Baku.

"At present, we are seeing a certain gap between the substantial current account surplus and the pace of reserve accumulation. High energy prices do not automatically translate this surplus into the country"s foreign exchange and gold reserves," Eminov stressed.

According to the economist, a key feature of the current period of high energy prices is the nature of inflationary processes. "While previous comparable periods saw a significant acceleration in inflation, under current conditions inflationary pressures remain moderate. On the one hand, higher global energy prices put pressure on the cost of imported goods, while on the other, slower growth in the non-oil sector acts as a restraining factor. As a result, these factors offset each other, keeping inflation at around 6%," the holdingchr("39")s chief economist said.