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Azerbaijan: Price Liberalization
Country Study > Chapter 6 > The Economy > Economic Reform > Price Liberalization


In January 1992, about 70 to 80 percent of producer and consumer prices were decontrolled, although prices for commodities such as gasoline were artificially increased. Further rounds of price liberalization took place in April, September, and December 1992. Because most industries are still monopolies, price-setting is supervised by the Antimonopoly Committee, which approves requests for price increases and reportedly grants most such requests. Because the state still procures much of Azerbaijan's agricultural production, prices are set by negotiations between the state and producers.

Retail price inflation surged after the first round of price liberalization in January 1992. Thereafter, the monthly rate eased somewhat, averaging about 24 percent during most of 1992. According to official figures, in 1993 average living expenses exceeded income by about 50 percent. The ratio of expenses to income was about the same in Kazakhstan and worse in Armenia and Turkmenistan. Although prices for items such as bread and fuel remained controlled during 1993, in November 1993 the government announced price rises because commodities were being smuggled out of Azerbaijan to be sold elsewhere where prices were higher. By the end of 1993, it was reported that the minimum weekly wage would not even buy one loaf of bread and that hundreds of thousands of refugees in Azerbaijan "simply face starvation," a situation that heightened social and political instability.

Data as of March 1994

Last Updated: March 1994

Editor's Note: Country Studies included here were published between 1988 and 1998. The Country study for Azerbaijan was first published in 1995. Where available, the data has been updated through 2008. The date at the bottom of each section will indicate the time period of the data. Information on some countries may no longer be up to date. See the "Research Completed" date at the beginning of each study on the Title Page or the "Data as of" date at the end of each section of text. This information is included due to its comprehensiveness and for historical purposes.

Note that current information from the CIA World Factbook, U.S. Department of State Background Notes, Australia's Department of Foreign Affairs and Trade Country Briefs, the UK's Foreign and Commonwealth Office's Country Profiles, and the World Bank can be found on

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