Azeri official dismisses reports on 'double-digit' inflation

He went on to say that inflation levels exceeded single digits only in prices on food, which grew 11% in January-October. The highest increase was observed in the prices on meat, granulated sugar, as well as construction materials. There have been no major overall surges in prices on fruit and vegetables, with only some types of fruit becoming more expensive.

Valiyev said that not only the prices on foodstuffs and construction materials but also those on other goods and fees on services should be taken into account while calculating inflation levels.

"Considering the prices on all commodities, inflation made up only 7.7% in the first 10 months of 2006."

The Committee chairman said various activities are being carried out to curtail inflation. Agricultural fairs are organized in different locations of Baku twice a week.

"For instance, 3 kg of potatoes cost 20 Gapiks (25 cents) in the Gadabay district, while just 1 kg costs 40 Gapiks (45 cents) in Baku. Therefore, it is wrong to estimate inflation based only on the prices in the capital city's markets."

Valiyev admitted that the government will not be able to do away with inflation altogether, but added that this is not necessary, as inflation averaging 6-8% poses no risks.

The International Monetary Fund (IMF) experts said earlier that inflation may reach 12% in Azerbaijan in 2006-2007, despite assurances from officials that it will not exceed single digits.

Inflation made up 9.6% in 2005. AssA-Irada

/BakuTODAY/