Chekirbaev noted that internal reasons include the growth of the gross domestic product and an increase in wages. "Both budgetary and private institutions have started to raise salaries. The economy is showing active growth, which leads to increased consumption. However, it is worth mentioning that the price level for food and inflation in Kyrgyzstan is lower than that of our main trading partners — Russia, Kazakhstan, and Uzbekistan," he added.
Among the external factors, he said, high inflation in partner countries plays a significant role. Additionally, the geopolitical situation and tariff wars between major states have negatively affected the logistics of supplies, especially for food products. According to the National Statistical Committee, the rise in prices has had the greatest impact on fruits, which is also related to the import of citrus fruits and bananas," the official explained.
He also pointed to climate change and frequent droughts that have been observed in recent years. "Nevertheless, in Central Asia, food prices remain relatively affordable compared to other countries," he believes.
Chekirbaev reminded that the list of socially significant products includes flour, bread, milk, oils, meat, sugar, rice, pasta, eggs, and vegetables, including potatoes, carrots, and onions.
“There was a case when the price of carrots exceeded 100 soms per kilogram, while the cost of potatoes and onions remained stable. This happened due to a shortage of carrots in Russia and Belarus, which started to purchase them from us. In this situation, one can see both positive and negative aspects. High prices can be beneficial for farmers; however, there are people who heavily depend on the availability of food,” he noted.
According to Chekirbaev, Kyrgyzstan is among the countries where food expenses account for a significant share of citizens' incomes. In developed countries, this figure is only 5-10%, while here it is much higher.
Thus, changes in food prices become noticeable for a certain part of the population. "We understand this, but for farmers, it is undoubtedly a positive aspect. It should be taken into account that more than 60% of the population of Kyrgyzstan lives in rural areas, and farmers' incomes depend on prices and profits. There are always two sides: some win, others lose. It is also important to consider the overall inflation, which affects not only food but also raw materials, services, and other aspects," Uran Chekirbaev concluded.
