"The rise in inflation in Azerbaijan is mainly due to a significant increase in the cost of food products on the world market and high inflation in the countries that are our main trading partners," stated Sevinj Hasanova, the Deputy Minister of Economy of the Republic, at a joint meeting of the parliamentary committees on economic policy, industry and entrepreneurship, labor, and social policy during the discussion of changes in the state budget for 2022.
“Continued disruptions to global supply chains as a result of the Covid-19 pandemic, especially supply disruptions and rising energy prices due to the Russia-Ukraine conflict in recent months, have led to widespread food price increases,” Hasanova told the country's parliament. "According to the UN Food and Agriculture Organization, world food prices rose by 18% in January-May this year, and by about 23% over the past year, which is the highest figure. The policy implemented in the partner countries, their imposition of a ban on the export of some goods, tariffs, and duties are one of the reasons for the increase in food prices," the Deputy Minister of Economy noted.
According to her, to prevent the negative impact of a sharp rise in food prices in the world on business activity, welfare, and purchasing power of the population of Azerbaijan, the government of the republic is taking urgent anti-inflationary measures.
"In February, the Cabinet of Ministers signed a corresponding order. By the government's decision, the production of some goods was exempted from duties. Proposals have been prepared and submitted to exempt these products from value-added tax. In addition, the State Service for Antimonopoly Control and Supervision of Consumer Market under the Ministry of Economy of Azerbaijan has taken the necessary measures to prevent excessive price growth for buckwheat and bread. Also, to prevent the possible negative impact of world processes on our country's food security, the Cabinet of Ministers adopted resolutions aimed at regulating the export of several food products included in the minimum consumer basket," Hasanova added.
