Outbreak of Covid-19 pandemic had brought about many negative externalities to the world economy. Although governments have been trying to cope with it through monetary and fiscal policy implementations and acceleration of vaccination process, the rapid increase in global demand could not have been matched adequately by insufficient supply. Thus, surge in demand, lack of supply due to the global supply chain disruptions, and rising prices of transportation and logistics costs contributed to the global inflation. Many economies have been hit by these negative externalities. Meanwhile, Azerbaijan has carried out many social and economic policy conducts which addressed not only tackling rising inflation, also contributing to the economic growth of the country and social protection of the citizens. As a result of the complex economic and social measures, the economy of the country grew 5.6%, and current account balance of the balance of payment provided a surplus. Consequently, Azerbaijan will continue to deal with inflation in the economy in 2022.