Azerbaijan to weigh double-figures inflation rate for 2007, Ogtay Hagverdiyev claims

"In the current trend, I don’t believe, as an economist, the annual inflation rate prediction [single-figures] will not come true," added.

Mr. Hagverdiyev attributed his outlook for real inflation rate to the latest statistical data, saying the one-year inflation pace settled at 16.6% which narrowed to 9% for the first three months of the year, APA reports.

"At present the State Statistical Committee calculates consumer price level through counting 520 types of products and services. I personally estimated the consumer price growth on the basis of 40 main types of products and services and found out that price increase is 32.8%, and 26$ for foodstuffs, 16% for nonfood products and 150% for services," he said.

He added that people should not be discouraged by the latest data as the salary increase rate has recently beaten inflation pace in Azerbaijan.

"For the first quarter, popular money incomes rose 35%, per capita incomes 33% and average monthly salary 26%," he underscored.
 
He said that the government should further activate effective measures sand beef up anti-inflationary instruments to curb the inflation. The measures can include efficient administrative steps and sterilization of excessive cash flow liquidity by issuing securities. He advised that the national bank should somewhat mitigate hard anti-inflationary monetary policy to strengthen the national currency.

Azerbaijan faced average annual inflation rate at 9.4% in 2006.