HIGHLIGHTS

• In October 2012, the retail price of wheat flour increased by 4% in rural and 5% in urban areas on a month-on-month basis. This means that the price has increased by 53% in rural and 42% in urban areas since June 2012, and an average of 47% across the country.

• The domestic retail price of wheat flour in October was only 7% lower than the peak level of early 2011.

• Milk prices increased by 9% in rural and 11% in urban areas on a month-on-month basis. This highest increase was observed in rural Naryn (33%) and Batken (32%). The increase reflects a seasonal pattern.

• The average retail price of potatoes increased by 15% in rural and 16% in urban areas on a month-on-month basis. In Issyk-Kul oblast, a traditional potato-producing area, the price decreased by 37% in rural and 30% in urban areas.

• The increased food prices will affect poor families the most because they spend up to 61% of their household budgets on food.

• WFP’s latest food security assessment conducted in September 2012 showed that household food insecurity levels in the country deteriorated with an estimated 25% of households or about 1.3 million people deemed food insecure.

• In response to wheat flour price increases, the government released wheat flour stock from the State Material Reserve in October to be sold at a subsidised price.