EBRD predicts 16% inflation

Inflation will make up 16% in Azerbaijan in 2008, the European Bank for Reconstruction and Development (EBRD) predicts.

The Gross Domestic Product will grow 25% in the resource-rich South Caucasus republic this year, the bank said in its report.

But government experts predict inflation at about 12%. The Azerbaijani government has pledged to contain price hikes at single digits or slightly above 10%.

The report also said inflation indicators will be high, but average consumer prices are likely to go down across the region this year.

Inflation made up 16% in 2007, according to official figures, but informal sources put the indicator at 30%.*