Inflation at 7.7% y/y and 4.4% m/m in December 2015
Annual CPI inflation rate increased to 7.7% y/y in December, compared to 3.7% y/y in the previous month, according to Azerbaijan State Statistics Committee. Prices of non-food goods increased 11.1% y/y (+7.4ppts compared to the previous month), of food products 9.4% y/y (+3.6ppts) and of services 2.3% y/y (+1.8ppts).
Annual average inflation increased from 1.4% in 2014 to 4.0% in 2015, highest level for the last 4 years. Annual average inflation in 2015 was driven by increases in food (+6.1% y/y) and non-food goods (+3.9% y/y) prices, while price level in services was just 1.1% higher y/y.
Non-oil revenues up 3.0% in 2015 compared to the original budget
According to the minister of finance, Azerbaijan state budget revenues and expenditures were below the budgeted amount in 2015, down 11.6% and 15.0% respectively. Shortfall on the revenue side was due to lower transfers from the Oil Fund. Non-oil revenues, on the other hand, were up 3.0% compared to the originally planned AZN 6.8bn.
US$ 500mn sold at two auctions
Along with the Central Bank, State Oil Fund of Azerbaijan started selling FX reserves in open auctions organized by the Central Bank. Last week, Central Bank sold US$ 100mn, while the Oil Fund sold US$ 400mn. Rough calculations indicate that US$ 400mn sold at two auctions by the Oil Fund generated AZN 631.5mn, corresponding to 10.5% of the budgeted transfers from the Fund to the state budget.
SOCAR paid AZN 1.5bn taxes in 2015
State Oil Company of Azerbaijan paid AZN 75.3mn (-49.2% y/y) in December 2015. Overall, in 2015 SOCAR paid AZN 1.5bn taxes to the state budget (-20.2% y/y).
