DUSHANBE, Tajikistan, June 20. The Eurasian Development Bank (EDB) expects that by the end of 2024, inflation in Tajikistan will be 4.1 percent, Trend reports.
According to the bank, this will be supported by strong domestic demand in the economy, boosted by the National Bank of Tajikistan's (NBT) reduction of the interest rate.
It is noted that the stability of the somoni exchange rate this year will limit the speed at which inflation returns to the NBT’s target levels 6 (+/-2 percent). Additionally, rising prices for energy and food on global markets should not significantly accelerate inflation in the country, according to the bank’s base forecast.
Furthermore, in 2025–2026, inflation is projected to be around 6 percent. This will mainly be due to the gradual weakening of the somoni against the dollar.
Increasing the flexibility of exchange rate policy will help conduct a monetary policy that ensures inflation remains within the National Bank's target range.
It has been noted that inflation stood at 3.4 percent year-on-year at the end of April, down by 0.4 percentage points from the end of last year. The EDB expects that inflation will remain below the NBT target in the second and third quarters of 2024.