Inflation in Kyrgyzstan will reach 9.8% at the end of 2021. The Eurasian Development Bank (EDB) made such a forecast.
Pro-inflationary factors that appeared in mid-autumn would exert additional upward pressure on domestic prices in the Kyrgyz Republic in the remainder of 2021 and at the beginning of 2022. Higher-than-expected global growth of prices for energy resources, as well as more prolonged manifestation of problems in global supply chains, are likely to remain among the key pro-inflationary factors in 2022.
“Internal factors in 2021, like the external ones listed, were temporary: limited supply, one-time surges in demand, increase in excise taxes. Consumer demand, in our opinion, had a limited impact on the inflation growth. This is due to the fact that an increase in the inflow of remittances and an increase in consumer lending were offset by real wages reduction,” the bank’s macroeconomic forecast says. (24.kg/Business World Magazine)