Rising Tariffs Are Driving Inflation in Kyrgyzstan, EDB Says

Inflation in Kyrgyzstan accelerated to 11.5% in July 2026, up from 11% the previous month, as higher service costs pushed prices higher.

Analysts at the Eurasian Development Bank said increases in housing and utility tariffs exerted significant upward pressure. Water supply costs rose 24.7% in July, while electricity tariffs, which increased in May, rose 5.5%.

Strong consumer demand also contributed. Clothing and footwear added 1.14 percentage points to annual inflation, while restaurants, hotels and leisure services added another 0.9 percentage points. The bank linked part of that increase to greater demand from non-residents.

Food price growth slowed slightly, with the food basket rising 9.1% year on year in July as vegetable prices fell. External pressure remained, however, with the FAO global cereal price index 6.9% higher than in July 2025.

The EDB expects Kyrgyzstan’s inflation rate to remain above the National Bank’s 5% to 7% target range at the end of 2026. Its official June forecast projects inflation at 11.5% by year-end.