DUSHANBE, Tajikistan, September 25. Inflation in Tajikistan is accelerating due to several factors, including robust domestic demand, rising global energy prices, and an increase in prices in Russia, the country's primary import supplier, Trend reports.
According to the Eurasian Development Bank (EDB), inflation in Tajikistan rose to 4.2 percent year-on-year in August 2023 from 2.3 percent year-on-year in July. Price growth is in line with the target range set by the country’s National Bank (6±2 percent).
The EDB’s analytics said that a significant deceleration in inflation has been one of the noteworthy developments in Tajikistan's economy in 2022-2023. From 2019 through 2021, the inflation in the country exceeded the National Bank's target range.
However, in the latter half of 2022, inflation began to move back toward the target, thanks to the consistent implementation of monetary policy and a reduction in external price pressures. Economists at the bank believe that the easing of the current policy now carries significant pro-inflationary risks.
At the same time, the Asian Development Bank (ADB) recently revised its inflation expectations for Tajikistan. The bank now anticipates that inflation in Tajikistan will decrease to 5.5 percent in 2023, down from the previous forecast of 7 percent.
The bank's analysts have also adjusted their inflation forecast for 2024. While the April projection was 6.5 percent, the new forecast sets it at 6 percent. However, these figures still surpass the 4.2 percent inflation recorded in 2022.