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Prices to grow by 7 percent in Kyrgyzstan at year-end 2020

Average annual inflation is expected to be about 7 percent in 2020. It is 2.4 percent higher compared to forecasts in the previous quarter. Report on the macroeconomic policy of the National Bank of Kyrgyzstan says.

Given the current internal and external factors resulting from the spread of the global coronavirus pandemic, inflation in the economy of Kyrgyzstan in 2020 will reach a level near the upper limit of the target range of 5-7 percent.

«The main factors of the accelerating inflation in 2020 are the increased demand for food products in March-April, caused by the introduction of emergency situation and the state of emergency in some regions of the country. Depreciation of the KG som to the U.S. dollar made an additional contribution to the increase in consumer prices,» the National Bank says.

Consumer prices increase is expected to partially offset the decline in domestic demand in 2020.

The National Bank noted that inflation at year-end (December 2020 to December 2019) could reach about 7-7.5 percent. In 2021, an average inflation rate is expected at 4.3 percent and will reach about 3.5-4 percent by the end of the year.