BISHKEK, Kyrgyzstan, September 6. The National Bank of Kyrgyzstan predicts that the country's inflation rate by the end of the current year will be around 10.3 percent, Trend reports.
The bank’s report explained that despite the expected decrease in prices in the global food market in the short term, a significant part of global food inflation will still impact price increases in Kyrgyzstan during 2023.
This is primarily due to unfavorable climatic conditions, leading to a deficit of irrigation water in the agricultural sector, as clarified in the report.
The forecast for non-food inflation remains moderately high, averaging around 12 percent in 2023 with a gradual decrease by the end of 2024.
The inflation rate for December 2023, compared to December 2022, is projected to be in the range of 10-12 percent, driven by high inflation expectations and the devaluation of the som against the dollar.
According to the bank, the government's decisions to increase tariffs for electricity, heating, and hot water also contributed to the overall inflationary setback.
However, it is expected that annual inflation will return to 5-7 percent targets rate by the end of 2025.
The National Bank had previously assessed the inflation rate in the country for 2022 at 14.7 percent.