Heydar Babayev: "Administrative measures of influence on inflation are ineffective in conditions of market economy"

The due announcement was made by Azerbaijan's Minister of Economic Development Heydar Babayev.

He said it is not planned to correct the forecasts but it is obvious that it will be difficult to keep inflation on the previously predicted level "on the background of world processes and correction of the state budget of Azerbaijan for this year".

"But, it would be wrong to base on the information of the first quarter in this case, as the processes may be reversed", said Babayev.

He noted that the country's government considers it incorrect to apply administrative measures to prevent rise in prices on foodstuffs, as it was, for example, in Russia.

"We asked counterparts in Russia to provide information about results of freezing prices on foodstuffs and their analysis showed that such actions are ineffective in conditions of market economy. Thus, this resulted in deficit of certain products in Russia. I think inflation can only be influenced by economic methods, that is regulation by means of tariffs on import, VAT and others. This promotes wider market liberalization", the minister concluded.

/Day.Az/