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Inflation in Kyrgyzstan slowing down, but risks remain high

The annual inflation rate in Kyrgyzstan continues to slow down. Deputy Head of the Department of Communications and International Cooperation of the National Bank of the Kyrgyz Republic, Ilyichbek Sultankulov, announced at a press conference.

According to him, in February 2024 the rate was 5 percent, down from 7.3 percent in December 2023. Food price growth continues to slow down at a faster pace. At the same time, prices for non-food goods and services show a more restrained downward trend.

Inflation is under pressure from factors such as continued high domestic demand, as well as the impact of the revision of tariff policy, in particular on public transport services.

«Global inflation in the world is gradually slowing down as a result of tightening monetary policy by leading countries. But in general, for Kyrgyzstan, external economic conditions in the external environment are still associated with high uncertainty due to the geopolitical situation in the world and price volatility on world commodity markets. In the short term, it is expected that the rate of overall inflation in the republic will be within the medium-term inflation target of 5-7 percent. The National Bank’s measures will be aimed at further reducing the rate of growth in prices for non-food goods and services and, in general, the level of core inflation, which at the moment still remain above target inflation values,» Ilyichbek Sultankulov concluded.