Inflationary pressures in Kyrgyzstan remain elevated due to a combination of internal and external factors. According to official statistics, the consumer price index in November reached 108.3% compared with December of last year, while average annual inflation for January–November stood at 8.1%, Akchabar.kg reports.
The Ministry of Economy of Kyrgyzstan notes that one of the key drivers of rising prices has been stronger domestic demand, fueled by growing household incomes. By the end of 2024, nominal wages increased by 14.1%, while real wages rose by 8.6%. In January–October, growth accelerated to 19.2% and 10.4%, respectively. Additional support to consumption came from net inflows of remittances from abroad, which increased by 22.9% over ten months.
Price dynamics continue to be significantly influenced by the domestic market’s heavy dependence on imports, particularly food products. Fluctuations in prices for flour, vegetable oil, grains, and other socially important goods on external markets are directly reflected in domestic prices.
Another factor contributing to inflation has been higher logistics costs. Increases in railway freight tariffs in Kazakhstan—first by 16% and then by an additional 35%—led to higher transportation expenses, which were passed on to final prices, intensifying cost-push inflation.
Further pressure stems from a sharp rise in lending activity. Over ten months, total lending expanded by 52%, with consumer loans nearly doubling, sustaining strong demand for goods and services.
Alongside domestic factors, external inflation in Kyrgyzstan’s main trading partners continues to weigh on price stability. Inflation reached 11.4% in Kazakhstan, 5.3% in Russia, 6.5% in Belarus, and 2% in Armenia, significantly limiting the scope for slowing inflation within the country.
CentralasianLIGHT.org
December 18, 2025