The sharp appreciation of the euro is causing a noticeable rise in the cost of goods imported from Europe.
While the Azerbaijani manat has maintained relative stability against the U.S. dollar, it has lost ground against the euro — a development that is directly impacting the price of goods sourced from eurozone countries.
According to economic analyst Khalid Karimli, the depreciation of the manat against the euro began in January of this year. As a result, prices of both European imports and euro-denominated goods have seen an uptick. In the food sector, this increase has ranged between 2 to 3 percent over the past six months.
Karimli notes that the most significant price hikes are observed in spare parts for vehicles imported from Europe.
He also pointed out that the current trajectory of the euro’s appreciation exceeds the Central Bank of Azerbaijan’s annual inflation target of 6 percent. Should the euro continue to gain value, prices for euro-based imports are likely to climb further.
