Persistent price increases for food, utilities, and construction materials continue across Kyrgyzstan, driven by a complex mix of domestic and external factors that have created what the country’s Ministry of Economy describes as “systemic pressure on prices,” according to Akchabar.kg.
One of the key contributors is seasonal imbalance in the food market. As the ministry notes, spring and summer typically see dwindling supplies of last year’s harvest, while deliveries of fresh vegetables, fruits, and greens have not yet reached full capacity. This particularly affects the cost of perishable goods.
Additionally, the domestic market remains heavily reliant on imported staple foods such as flour, vegetable oils, and grains. The situation is further exacerbated by global price trends: in July 2025, the FAO Food Price Index reached 130.1 points—1.6% higher than in June. The sharpest increases were observed in meat and vegetable oil prices, while cereals and dairy products saw price declines.
Rising electricity tariffs—up 23.6%—combined with an 8.2% increase in consumption, have contributed to higher utility costs and production expenses, pushing prices up by an average of 7.1%. Another significant factor has been the growth in household incomes: real wages in Kyrgyzstan rose by 11.5% in the first half of 2025 compared to the same period in 2024, while cross-border remittances increased by 26.1%.
Additional upward pressure on prices comes from higher logistics and import costs. Rail freight tariffs in Kazakhstan have risen by 16–35%, and Russia has increased its VAT rate from 20% to 22%. Housing and construction material prices have also climbed by 8–10% over recent months.
Expanding consumer credit has further fueled inflationary trends: the volume of consumer loans in Kyrgyzstan grew by 37.9% in the first half of 2025, boosting demand. These trends are compounded by elevated inflation expectations among the population, particularly due to announcements about potential price hikes for heating and hot water supply.
The Ministry of Economy stresses that the combined impact of these factors is intensifying inflationary pressures and urges businesses and consumers to take current economic trends into account when planning expenditures and setting prices.
CentralasianLIGHT.org
August 18, 2025