Higher tariffs drive inflation in Kyrgyzstan, Eurasian Development Bank says

Inflation in Kyrgyzstan accelerated to 11.5% in July 2026, up from 11% a month earlier, as higher service costs added pressure to prices.

The Eurasian Development Bank said increases in housing and communal tariffs were a major factor. Water costs rose 24.7% in July, while electricity tariffs, increased in May, were 5.5% higher.

Strong consumer demand also continued to influence inflation. Clothing and footwear contributed 1.14 percentage points to annual inflation, while restaurants, hotels and leisure services added another 0.9 percentage points. Analysts linked part of that pressure to increased demand from non-residents.

Food price growth eased somewhat. The cost of the food basket rose 9.1% year on year in July, helped by lower vegetable prices. External pressure remained, however, with the Food and Agriculture Organization's global grain price index 6.9% above its July 2025 level.

The Eurasian Development Bank expects inflation to remain above the National Bank's target range of 5% to 7% for the year. Its official June forecast put inflation at 11.5% by the end of 2026.