The monetary component of inflation in Kyrgyzstan remains under control

In Kyrgyzstan, price growth today is not driven by excess money in the economy, but by external supplies. This was announced at a briefing by Azat Kozubekov, Deputy Chairman of the National Bank, who explained that the monetary component of inflation is under control and that the main risks come from outside.

Kozubekov noted that the National Bank effectively regulates the money supply through overnight deposits and other instruments. As a result, monetary inflation is kept within the range of 5-7% and is in line with the regulator's targets. If volatile goods and items sensitive to non-monetary factors are removed from the consumer price index, core inflation shows a stable picture. According to the deputy head of the National Bank, the regulator limits the impact of money supply on inflation and keeps it at a stable level.

Nevertheless, prices are rising due to factors that monetary policy cannot influence. Kyrgyzstan is almost entirely dependent on imports of food and raw materials, and any increase in prices on foreign markets directly affects the cost of goods within the country.

«Unfortunately, inflation in Kyrgyzstan is mainly driven by non-monetary factors. The rise in world prices inevitably affects our situation», — Kozubekov said.