Azeris protest against price rises

"Where is the money from oil?" and "No to high prices!" the protesters shouted, while some demanded the government resign.

Isa Gambar, head of the opposition Musavat party, said: "Our party is not trying to make the government resign but urges it to improve living conditions for the people."

International observers said there were between 1,500 and 2,000 protesters, while the police said there were around 600 at the demonstration in a suburb of the capital Baku.

Some economists say the oil-fuelled boom in Azerbaijan is triggering "Dutch disease", where sudden wealth causes runaway inflation.

In January the government doubled the price of oil products and ordered a two-fold rise in municipal rents and a three-fold rise in electricity bills. The prices for products and services from food to buses and newspapers have also increased sharply.

The oil rush fuelled a 35-percent growth in the economy last year -- one of the fastest in the world -- spurring inflation which is approaching double figures. Economists say the government's heavy spending is helping fuel the price rises.

President Ilham Aliyev has ruled Azerbaijan since 2003. He has said the price increases were the result of market reforms to end Soviet-era subsidies.

In January, police used truncheons to break up a small opposition rally against soaring inflation. The opposition say heavy-handed police tactics dissuade people from showing up to their demonstrations. Reuters