Food prices continue to rise. Inflation in May amounted to 10.7%

Bishkek, June 1, 2021. / Kabar /. In May 2021, the annual inflation rate was 10.7%, the National Bank of Kyrgyzstan reported.

The rise in prices for consumer goods and services continues, mainly for food products (sunflower oil, meat and sugar) and fuels and lubricants.

In May 2021 (the 21st), the annual inflation rate was 10.7%. The rise in prices for food products in global markets and in the EAEU countries is the main reason for the persisting inflationary risks in the country.

In order to limit inflationary pressure in the country, the National Bank has taken measures to curb the monetary component of inflation. Active measures to manage liquidity helped to reduce the amount of excess liquidity in the banking system. Against this background, the participants of the interbank credit market are becoming more active in the short segment. In general, short-term money market rates tend to approach the key rate and continue to fluctuate within the interest rate band established by the National Bank. Commercial banks continue to build up their resource base and expand lending to the economy.