Why prices continue to rise in Kyrgyzstan

According to the Ministry of Economy, Kyrgyzstan is experiencing steady growth in prices for food, utilities and construction materials. The ministry attributes the rise in the cost of goods and services to a combination of internal and external factors.

According to the ministry, pricing is primarily influenced by seasonal increases in food prices.

"The spring and summer period is traditionally characterised by the depletion of last year's harvest and delays in new deliveries.

This is especially true for perishable vegetables, fruits and greens, which causes a temporary imbalance between supply and demand," the ministry said.

The price increase is also due to the domestic market's dependence on imports of food products such as flour, vegetable oil and cereals. In July 2025, the average FAO food price index stood at 130.1 points, 2.1 points (1.6%) higher than in June. Meat and vegetable oils rose particularly sharply, while prices for cereals and dairy products declined.

In addition, the following factors contributed to the rise in the cost of goods and services:

• a 23.6% increase in electricity tariffs and an 8.2% increase in consumption, which led to higher utility and production chain costs (+7.1%);
• accelerated growth in household income: real wages in January–June 2025 rose by 11.5% compared to the same period in 2024, while cross-border remittances increased by 26.1%;
• higher logistics and import costs (railway tariffs in Kazakhstan rose by 16–35%, while VAT in Russia increased from 20% to 22%);
• an 8–10% increase in housing and construction material prices;
• expansion of lending to the population – in the first half of 2025, consumer loans grew by 37.9%;
• increased inflation expectations among the population, including due to the announced rise in heating and hot water prices.

Together, these factors are creating ‘systemic pressure on prices’ and indicate that businesses and consumers should take current economic trends into account when planning their spending.