BISHKEK, Kyrgyzstan, June 7. The Eurasian Fund for Stabilization and Development (EFSD) expects a slowdown in inflation in Kyrgyzstan, Trend reports.
Lower inflationary pressure and a slowdown in inflation are predicted by the fund as a result of reduced consumer activity and global food prices.
Additionally, the cessation of fiscal stimulus will contribute to this trend. As a result, consumer inflation is expected to decrease from 7.3 percent in 2023 to 5.5 percent in 2026, aligning with the National Bank of Kyrgyzstan's medium-term inflation target of 5-7 percent.
In response to slowing inflation, the National Bank of Kyrgyzstan will reduce interest rates. The average annual policy rate is expected to be 10 percent in 2024 and 8 percent in 2025–2026.
According to the National Bank of Kyrgyzstan, the country's annual inflation rate was 5.2 percent in April 2024. Inflation in Kyrgyzstan fell from 14.7 percent at the beginning of 2023 to 7.3 percent by the end of last year. The International Monetary Fund (IMF) expects inflation to reach 6.7 percent in 2024, while the World Bank (WB) anticipates an inflation rate of 8.4 percent this year.