Inflation in the Kyrgyz Republic slowed down to 4.1 percent in July from 4.5 percent a month earlier. The macroeconomic review of the Eurasian Development Bank (EDB) says.
According to analysts, this trend is facilitated by the weakening of price pressure in the food segment (+0.4 percent in July after 1.2 percent a month earlier).
At the same time, the growth of world prices for vegetable oil, meat and sugar has been accelerating for several months in a row, which may create upward price pressure in the Kyrgyz Republic.
The rise in the price of alcoholic beverages and tobacco products (+9.7 percent) is partly due to an increase in excise taxes. Non-food products grew in price by 7.4 percent, and services — by 6.8 percent. In the first case, this is due to the growth of import prices, and in the second — to an increase in tariffs for transport services, restaurants and hotels.
«We forecast price growth at 4.3 percent by the end of this year. The National Bank of the Kyrgyz Republic kept the key rate at 9 percent. Among the key factors that influenced the bank’s decision were the volatility of global commodity markets, the planned revision of the state’s tariff policy, and increased inflation expectations. According to the central bank’s estimate, annual inflation as of July 19 was 4.2 percent and will increase to the target of 5-7 percent by the end of the year. We believe that the level of current monetary conditions is close to neutral, and do not expect changes in the key rate until the end of 2024,» the EBR experts concluded.
