This issue of the Price Monitoring Bulletin is prepared based on the operational daily food price data collected by the National Statistics Committee from 18 markets across the country and disaggregated at province level as the average value (Chuy province - Tokmok, Kara-Balta; Osh province - Osh, Uzgen, Kara-Suu and Nookat; Talas province - Talas and Manas; Naryn province - Naryn and Chaek; Batken province - Batken and Isfana; Jalal-Abad province - Jalal-Abad, Toktogul and Kerben; Yssyk-Kul province - Karakol and Balykchy; and Bishkek city). This is a secondary data analysis.
SITUATION UPDATE: The global economy is recovering faster from the effects of the pandemic accelerated by the stimulating measures of state support and the easing of quarantine restrictions thanks to ongoing mass vaccinations across countries. For the Kyrgyz Republic, the recovery of business activities in trading partner countries also contributes to the restoration of trade and economic relations. However, high uncertainty remains regarding the development of both global and regional economies, given the risks of new strains of COVID-19. Although, there are some signs of economic recovery as the positive inflow of foreign currencies into the country shows, from January-June 2021, GDP remained 1.7 percent lower compared to the previous year, totalling 271 billion Kyrgyz soms. From JanuaryMay 2021, the net inflow of remittances from individuals increased by 45.3 percent, amounting to USD 778.1 million compared to the same period last year. In June 2021, compared to the same period last year, the Consumer Price Index, which measures price inflation, increased by 10.8 percent for all goods and services and by 17.6 percent for staple foods (+25 percent for meat, +6 percent for bread products, +11 percent for milk and dairy products, +51 percent for oils and fats, +22.3 percent for vegetables and +25.7 percent for sugar). The observed increase in food prices in world markets and the limited supply in producing countries will determine whether consumer prices in the country risk to continue to grow for the second half of 2021. Rising food prices are also affecting households’ access to a nutritious diet, vital for all-around growth and development. The Ministry of Agriculture, Water Resources and Regional Development of the Kyrgyz Republic submitted a draft resolution ‘On goods subject to a value-added tax at the rate of zero (0) percent to stabilize market prices for food products’ to the Cabinet of Ministers for public discussion to propose a ‘Zero VAT’ for the period from 1 June to 31 December 2021 for the taxable imports of granulated sugar, vegetable oil and livestock. The Government continues to monitor and stabilize food markets across the country through price controls on 11 essential food items and to regulate import and export volumes.