Inflation 16.7% in 2007

Inflation made up 16.7% in Azerbaijan in 2007, the state statistics body said while drawing up the outcomes of last year.

“This was an undesirable development in the national economy,” the State Statistics Committee chairman Arif Valiyev told the press Wednesday.

Food prices rose 16.2%, whole those on other goods – 10.5%, and fees on services 25.3%. Inflation made up 2.5% in December alone.

Valiyev said outside factors were among those that affected domestic prices. “Some 45% of the demand for foodstuffs was met by imports. The rising prices abroad affected prices at home.”

He went on to say that price increases are likely to linger on this year due to a similar development observed in overseas markets.

“World prices for both oil and gold are on the rise. The increase is affecting transport as well, ultimately leading to price hikes,” he said.

Valiyev predicted that inflation in 2008 will therefore range between 10% and 13%.*