EDB forecasts slowdown in consumer price index growth in 2021

Inflation continues to grow and reached the NBKR target of 5-7%. This is stated in the analytical material of the Eurasian Development Bank.

In March 2020, the consumer price index increased to 5.9% from 4.1% in February and 3.2% in January.

There is a tendency for food products to become more expensive, associated primarily with the rising cost of grains, meat, vegetables, and fruits.

In February, excise taxes on tobacco products were increased, which further increased the cost of the “alcoholic drinks and tobacco products” basket. Non-food products and services have a restraining effect on inflation.

Analysts believe that the trend of accelerating growth in domestic prices in the coming moths will continue due to ta short-term surge in domestic demand from the population forming their own stocks and the depreciation of the KGS against the USD.

In 2021, the growth rate of the consumer price index will begin to slow down amid low external inflationary background and weakening economic activity in the country.