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EEC to develop measures to curb inflation in Kyrgyzstan

The Eurasian Economic Commission (EEC) will develop recommendations for Kyrgyzstan on economic measures due to the rise in inflation. The press service of EEC reports.

It is noted that among all the countries of the Eurasian Economic Union, inflation exceeded the target point only in Kyrgyzstan. According to the agreement on the EAEU, states must formulate economic policies in such a way that the inflation rate does not exceed the lowest inflation rate among all EAEU countries by more than 5 percent. Last year, the smallest price increase was registered in Armenia — 3.7 percent. Based on this indicator, the target point was calculated at 8.7 percent. But the prices increased by 9.7 percent in the Kyrgyz Republic.

The recommendations will be developed for Kyrgyzstan for the first time.

«The rise in food prices had a major impact on acceleration of inflation in the EAEU countries. Their contribution to the inflation growth in Kyrgyzstan amounted to 5.7 percent. The acceleration in food inflation is mainly associated with poor harvest of certain agricultural crops in the EAEU countries, as well as with private factors. For example, food inflation in Kyrgyzstan increased largely due to a sharp rise in prices for meat and meat products in the fourth quarter of 2020 due to problems with the import of livestock,» the EEC stressed.

In total, the commission has developed and adopted 13 country recommendations, four of which were adopted due to excessive inflation.