According to statistics from the State Statistics Committee, prices for food, drinks, and cigarettes increased by 2.6% in September compared to the previous month. Prices were 10.4% higher than in September of the prior year. Official figures reveal that Azerbaijanis spend half of their income on food.

Inflation rose to 5.2% from January to September 2021, compared to 2.9% in the same period of 2020.

The committee also keeps track of pricing fluctuations for 140 different foods on a monthly basis. Inflation has been very high in some areas. In September, for example, cooking oil was 40% more costly than the same month the previous year.

Azerbaijanis are not only spending more money on food these days. The government raised natural gas costs for residences in July, doubling the price for moderate users and increasing the price by 2.5 times for those who use more than 2,500 cubic meters of gas each month.

Azerbaijanis who consume less than 1,200 cubic meters of gas will see their prices increase by 20% starting November 1. Industrial and agricultural users will experience a 10% rise. Electricity rates in the trade and service sectors are also rising by around 22%.

The Tariff Council, the body that determines prices on state-provided goods and services, justified the utility increases by saying they would “bolster the competitiveness of the economy,” guarantee energy security, and maximise the “efficient use of resources” while limiting subsidies from the state budget.

Petrol prices are also rising: The price of 95-octane gasoline increased from 1.45 manats to 1.6 manats (85 cents to 95 cents) in mid-September, while the price of 98-octane gasoline increased from 1.6 manats to 1.9 manats (95 cents to 1.12). This was the third price hike in as many years. While these types of gasoline are imported from other countries and are not subject to tariff regulation, the Tariff Council did hike prices on 92-octane gasoline and diesel fuel earlier this year.

Azerbaijan's parliament has also began debating a new law that would raise the prices for a number of government services. Under the new legislation, for example, the price for getting a new passport would rise from 40 to 60 manats ($24 to $35) and for a driver’s license from 20 to 40 manats ($12 to $24). 

According to the State Statistics Committee, Azerbaijan spent $1.7 billion on imported food in 2019. For Azerbaijanis whose pay is funded by the government, there is some solace on the horizon. President Ilham Aliyev issued an executive order on October 16 ordering the government to set aside funds in the 2022 budget for a pay raise for state employees.

Azerbaijan's minimum salary is 250 manats ($147), up from 130 manats amid another wave of inflation in 2019.