BISHKEK, Kyrgyzstan, September 30. The Asian Development Bank (ADB) has made slight reductions to its inflation projections for Kyrgyzstan for both 2024 and 2025, given the sharper-than-expected decline in inflation during the first half of 2024, Trend reports.
The bank is now projecting a rate of 6.8 percent for 2024, down from a previous estimate of 7 percent in April. The forecast for 2025 has also been lowered, with inflation now expected to reach 6.2 percent, compared to the earlier prediction of 6.5 percent.
The bank reported that inflation in Kyrgyzstan has slowed across all major categories in the first half of 2024, particularly in food prices. Average annual inflation fell from 12.7 percent in the first half of 2023 to 5.1 percent a year later. By June 2024, year-on-year inflation had dipped to 4.5 percent. Core inflation similarly decreased from 13.7 percent to 5.8 percent.
The slowdown was attributed to several factors, including lower import prices, improved supplies of essential goods, a stronger local currency, and the delayed impacts of earlier monetary tightening. Food prices in particular rose by only 1 percent.
According to the ADB, despite this positive trend, inflationary risks remain, stemming from fluctuating global food and energy prices, potential currency depreciation, persistently high inflation expectations, and strong demand pressures.