BISHKEK, Kyrgyzstan, September 21. ADB (the Asian Development Bank) predicts that the inflation rate in Kyrgyzstan will be 12 percent in 2023, Trend reports.
This forecast has not changed since April 2023, and the same goes for the prediction for 2024, which remains at 8.6 percent.
The average annual inflation rate has decreased to 12.4 percent from January through July 2023 from 13 percent in the same period in 2022. Specifically, inflation for food items decreased to 11.1 percent from 15.2 percent. At the same time, it rose to 13 percent in 2023 from 10.8 percent last year for other goods and to 10.5 percent from 8.8 percent for services.
The average annual core inflation rate in Kyrgyzstan stood at 13.1 percent from January through July 2023. Several factors contributing to this ongoing inflation include expansionary fiscal policy, higher electricity prices, and other regulated prices.
Although year-on-year inflation decreased to 10.3 percent in July 2023 from 15.3 percent in January 2023, it still remains well above Kyrgyzstan's National Bank target range of 5 to 7 percent.
“With slower growth in domestic demand expected, further depreciation of the Kyrgyz som, likely a poor harvest, and elevated core inflation, this update retains earlier forecasts for slowing but still high inflation in 2023 and 2024,” the ADB’s economists believe.