“Inflation in Azerbaijan exceeded the growth rate of the population’s income almost 5-6 times”
Annual inflation in Europe was 9.1 percent in August 2022. In September, that figured reportedly reached 10.0 percent. The information released by the UN Statistics Division (World of Statistics) also confirmed. According to the data, even higher inflation was recorded in Estonia: 24.2 percent.
The main component driving inflation in the region is energy.
The highest annual indicator of energy was registered in September: it was 40.8 percent. This figure was 38.6 percent in August, and a month later an increase of more than 2 percent was observed.
After energy, high inflation was recorded in food, alcohol and tobacco products, and this figure was 10.6 percent in August and 11.8 percent in September.
Next comes non-energy industrial goods, which experienced 5.1 percent inflation in August and 5.6 percent in September. An increase in the prices of service fees was also observed – 3.8 percent in August and 4.3 percent in September.
As for Azerbaijan’s neighbors, it was announced that the annual inflation rate in Turkey in September 2022 was 83.45 percent.
According to the information of the Georgian National Statistics Office , in September 2022, the consumer price index increased by 0.8 percent compared to the previous one. As for annual inflation, it was 11.5 percent.
According to the latest figures released by the National Statistical Committee of Armenia, the 12-month consumer inflation in Armenia increased by 9.1 percent in August 2022. From July to August, the inflation rate increased by 0.2 percent.
In August 2022, inflation in Russia reached 14.3 percent compared to the same month of the previous year. From July 2022, a decrease of 15.1 percent was recorded. In August 2022, the prices of food products and non-alcoholic beverages in this country increased by 12.5 percent compared to August 2021.
According to official statements, inflation in Azerbaijan was 13.2 percent in January-August 2022.
The State Statistics Committee (SSC) reports that food products, beverages and tobacco products have increased in price by 18.9 percent, non-food products by 7.2 percent, and paid services to the population by 10 percent.
In August 2022, inflation increased by 0.9 percent compared to July, and by 14.2 percent compared to August last year.
Economist Rovshan Agayev, in his article published on the website of the Baku Research Institute (BAI), writes with reference to official statistics that in the last two years (2021-2022), the level of inflation in Azerbaijan exceeded the growth rate of per capita income by almost 5-6 times.
“When the cost of the basket of necessary food and utilities is taken as a basis, although the cost of living of the population has increased by more than 75 percent in the last six years, the average wages have increased by almost 65 percent, and the average income of the population has grown at a slower pace.”
The expert said that in 2016-2021, nominal per capita incomes increased by only 21 percent.
If we take into account the possible growth of 13-14 percent expected for 2022, it seems that prices are rising almost twice as fast as incomes.