«Global economic trends against the backdrop of the conflict in the Middle East continue to impact inflation in the Kyrgyz Republic. Price fluctuations in global food markets, the risk of disruptions in the supply of petroleum products through the Strait of Hormuz, and the associated price shock in the global oil market remain among the key factors driving the growth in the cost of imported goods,» the National Bank of the Kyrgyz Republic said in a statement.

The inflation rate in Kyrgyzstan since the beginning of 2026 reached 6.5 percent (11.3 percent in annual terms).

«Against the backdrop of external influences, the food component and fuel and lubricants demonstrated the largest price increases in the inflation structure, creating secondary effects and affecting the prices of other goods and services in the consumer basket. Prices for services remain elevated as a result of ongoing reforms to fiscalize tax procedures in the hotel and restaurant sector,» the statement reads.

«The economy of the Kyrgyz Republic is seeing growth in domestic demand as a result of increasing real incomes. At the same time, high investment activity is observed, primarily in the construction sector. Nearly all sectors of the economy are demonstrating positive dynamics, leading to double-digit real GDP growth of 11.9 percent,» the National Bank noted.

Due to the global geopolitical instability and the emergence of new shocks since the beginning of 2026, the National Bank has tightened monetary conditions to minimize the impact of external inflationary factors on the country’s economy.

«Since May 2026, tactical steps within the framework of the current monetary policy have also been changed, and measures to regulate the volume of money in the economy have been strengthened. Currently, the interbank money and foreign exchange markets are operating stably, and short-term money market interest rates are formed near the National Bank’s discount rate,» the statement reads.

«Commercial banks have excess liquidity, the level of which is actively regulated by the National Bank’s monetary instruments to limit monetary contribution to inflation. The measures taken by the National Bank of the Kyrgyz Republic are expected to contribute to strengthening savings behavior among the population, preserving the purchasing power of the national currency, and creating the preconditions for slowing inflation in the country to the target level of 5-7 percent in the medium term,» the National Bank noted.

The main factors that could increase inflationary pressure in the Kyrgyz Republic include trends in the external economic environment:

high price volatility in global and regional commodity markets;

a tense geopolitical situation in the world.

Under these conditions, the National Bank continues to assess the emerging external and internal factors of inflation and considers it necessary to maintain tight monetary conditions to ensure price stability in the economy in the medium term.

The discount rate is a key instrument of the country’s central bank’s monetary policy, determining the cost of short-term borrowing for commercial banks. It affects the overall cost of credit in the economy and lending conditions for businesses and individuals.

Should any risks to price stability arise, the National Bank will respond promptly to emerging inflationary factors.

The next meeting of the Board of the National Bank of the Kyrgyz Republic to discuss the discount rate will be held on August 24, 2026.