Despite the reducing effects of seasonal factors in Azerbaijan, inflation was at the level of 0.9% in August.

In addition to the increase in the price of non-food and services, the 1.2% increase in the price of food products caused the monthly inflation.

According to the information provided to "APA-Economics" by the Central Bank of Azerbaijan, the annual inflation was 14.2% in August 2022, and the average annual inflation was 13.2%.

Base inflation was 12.1% per annum, average annual 10.2%.

The increase in the price of food products had a greater impact on the increase in the general inflation level.

In August, 9.1 percentage points of food, 2.1 percentage points of non-food, and 3.1 percentage points of changes in prices and tariffs of services contributed to the annual inflation.

The conducted analyzes show that among the factors determining the dynamics of inflation, cost factors of foreign origin have a dominant role.

Although world food prices decreased by 1.9% in August, their annual growth is at the level of 7.9% and is transferred to domestic prices with a certain time interval.

At the same time, the indices characterizing the costs related to the supply chain have decreased in recent months, but remain generally high.

Cost factors of foreign origin affect consumer prices as well as producer prices.

The producer price index for non-oil industrial products and agricultural products increased by 0.1% and 1% respectively in August.

In the last 1 year, the growth of these indicators was 16.5% and 19.3%, respectively.

Inflation expectations have remained largely stable since the last meeting.

According to the results of monitoring conducted among real sector enterprises, inflation expectations decreased in construction in August compared to the previous month, remained almost stable in the service sector, and slightly increased in trade and non-oil industry.

The forecast that annual inflation will be lower than the current rate by the end of the year remains unchanged.

Taking into account the expected change in world food prices and the high base of inflation in 2022, the annual inflation forecast for 2023 has been revised downwards.