The annual inflation rate reached 10.7 percent as of May 21, 2021. The National Bank of Kyrgyzstan reported.
The rise in prices for consumer goods and services continues mainly for food products (sunflower oil, meat and sugar), fuels and lubricants. The rise in prices for food products in global markets and in the EAEU countries is the main reason for the persisting inflationary risks in the country.
«To limit inflationary pressure in the country, the National Bank has taken measures to curb the monetary component of inflation. Active measures to manage liquidity helped to reduce the amount of excess liquidity in the banking system. Against this background, participants of the interbank credit market become more active in the short segment. In general, short-term money market rates tend to approach the key rate and continue to fluctuate within the interest rate collar established by the National Bank. Commercial banks continue to build up their resource base and expand lending to the economy,» the National Bank of the Kyrgyz Republic notes.
