Why is pharmaceutical spending rising so sharply? What does it say about public health trends, price dynamics, and the structure of Azerbaijan’s domestic supply chains? And what can be done to manage the impact on household budgets?

Vugar Bayramov, the member of the Parliament of Azerbaijan underlined that the retail trade turnover increased by 3.8 percent to 23 billion 341 million manats in the first 5 months of 2025. That's the amount of goods and services that are sold to consumers. One of the main points of attention in the structure of retail trade turnover is the cost of pharmaceutical products and medical supplies. Thus, these expenses increased by 18.2 percent compared to the same period of the previous year and exceeded 598 million manats. The increase in spending on pharmaceutical products was at a record level in the retail trade structure during that period, surpassing all other trends. On the other hand, double-digit percentage growth in spending on this direction alone was recorded in the same period. The growth rate for all other spending is in the single digits.

The increase in costs for pharmaceutical products is related to changes in the prices of pharmaceutical preparations, as well as to an increase in the demand for medical services. According to the State Statistics Committee, the price of medical services for consumer goods and paid services provided to the population increased by 4.5 percent in the same period. Prices of medical supplies have also risen. This means that as demand increases, so do the costs of health care. In view of the specific effects of consumer spending on pharmaceutical products on the family budget, it is very important to maintain price equilibrium in this respect. It's true that the prices of pharmaceuticals are regulated. But at the same time, it's important to optimize consumption costs. On the other hand, expanding domestic production and minimizing imports is also important for price and cost balance.