The entry into force of a two-week ceasefire between Iran and the US, as well as the lifting of restrictions in the Strait of Hormuz, has brought the processes occurring in the region back into focus. This background also draws attention to the changes observed in the prices of products imported from Iran to Azerbaijan on the eve of the war. At the same time, the intensive rainy weather conditions observed in the country in recent days are also among the factors affecting price dynamics in the market. The current situation raises certain questions regarding the direction in which price changes will form, both for imported products and in the domestic market.
Speaking to Modern.az on the topic, Akif Nəsirli, Chairman of the Center for Liberal Economists, stated that the main change observed against the backdrop of the ceasefire in Iran is a reduction in logistics and transportation costs.
"When the risk of war is high, border crossings become difficult, transportation becomes more expensive, and this directly affects the prices of products imported into Azerbaijan. As risks decrease, a certain reduction in prices may occur, especially for daily food items imported from Iran such as fruits and vegetables, vegetable products, potatoes, onions, tomatoes, and cucumbers. A softening in the prices of construction materials, cement, and some plastic and chemical products is also possible".
According to him, on the eve of the war, the main price increases were observed precisely in these categories.
"Due to delays at the border and transportation risks, perishable products – fruits and vegetables – had become more expensive. At the same time, the increase in fuel and logistics costs had also raised the prices of construction materials and industrial products," A. Nəsirli noted.
A. Nəsirli also clarified the issue of the impact of the intensive rainfall observed in our country some time ago on the market:
"The intensive rainfall observed in Azerbaijan also did not remain without impact on the market. Rainy weather conditions made it difficult to harvest and bring locally produced vegetables to the market, which led to price increases, especially for products such as greens, tomatoes, and cucumbers. In some cases, as the quality of the product decreased, supply diminished, and prices rose.
Generally, in the current situation, both weather conditions and regional political risks have a parallel impact on prices. If the weather stabilizes and tensions in the region continue to decrease, a relative reduction in prices, especially for food products, may be observed in the market," he concluded.
