Published
12/17/2025, 15:17Inflation in Kyrgyzstan remains high due to both internal and external factors. According to official statistics, the consumer price index in November compared to December last year was 108.3%, and the average annual inflation rate for January–November was 8.1%.
According to the Ministry of Economy, the key factor in accelerating inflation is the growth in domestic demand, fueled by an increase in household income. Thus, in 2024, nominal wages grew by 14.1%, and real wages by 8.6%. In January–October of this year, growth accelerated to 19.2% and 10.4%, respectively. Additional pressure on prices was exerted by the net inflow of remittances from abroad, which increased by 22.9% over ten months. These factors stimulated consumption and exacerbated so-called demand-pull inflation.
A significant source of price growth remains the domestic market's dependence on imports, primarily of food products such as flour, vegetable oil, cereals, and other socially important products. Price fluctuations in foreign markets directly affect the cost of goods within the country.
A separate factor was the rise in logistics and import costs. The increase in rail freight tariffs in Kazakhstan—first by 16%, then by another 35%—led to higher transportation costs, which were factored into final prices. As a result, cost-push inflation intensified.
Additional pressure is being exerted by a sharp increase in lending activity. Over ten months, the volume of lending increased by 52%, with consumer loans almost doubling. This supported high demand for goods and services and accelerated price growth.
Finally, external inflation continues to have an impact in Kyrgyzstan's trading partner countries, from which a significant portion of consumer goods are imported. Prices rose by 11.4% in Kazakhstan, 5.3% in Russia, 6.5% in Belarus, and 2% in Armenia. This limits the possibilities for slowing inflation within the republic.
