BAKU, Azerbaijan, September 21. The anticipated inflation rate in Central Asia and the Caucasus subregion is expected to decrease from 12.9 percent in 2022 to 10.6 percent in 2023 and to 7.5 percent in 2024, Trend reports.
As per data obtained from the Asian Development Bank (ADB), the forecast has been revised up by 0.3 percentage points, compared to the previous assessment of 10.3 percent in April 2023.
The Bank states that core inflation remains well above pre-pandemic averages in the Caucasus and Central Asia, price pressures remain strong, and core inflation is high in the regions.
Kazakhstan is behind the upward revision, with high inflation there reflecting rising government-regulated utility and fuel prices combined with sharp fiscal stimulus.
In Uzbekistan, price liberalization is still expected to contribute to inflation this year and next, although the rate is forecast to edge down to 10.0 percent next year, the lowest level since 2015, the Bank noted.
The inflation forecasts for Armenia and Georgia are revised down for 2023 and 2024 as the central banks there maintained tight policies through most of the first half of the year and because of the sharp appreciations of their currencies against the ruble.