Azernews.Az

Despite an overall annual decrease in the Producer Price Index (PPI) last month, prices in Azerbaijan’s processing industry showed an increase, reflecting shifting cost pressures across sectors. According to the State Statistical Committee, the general decline was mainly driven by a decrease in the oil and gas industry, while the non-oil and gas sector experienced notable price growth, Azernews reports. The PPI for the processing industry in January 2025 stood higher than in the previous month, marking the most significant increase since March 2023. The rise in producer costs, if not absorbed by businesses, could impact inflation trends by leading to higher consumer prices. While the Central Bank of Azerbaijan does not explicitly reference PPI in its interest rate decisions, fluctuations in production costs remain a key factor in economic assessments.

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