ADB raises inflation forecasts for Central Asia 

Forecasts for inflation in Central Asia are raised from 7.7% to 8.6% for 2021, and from 6.7% to 7.3% for 2022, primarily reflecting the latest price developments in Armenia, Azerbaijan, Georgia, Kazakhstan, Tajikistan, and Turkmenistan, Report informs, citing the Asian Development Bank (ADB).

Inflation in Azerbaijan reached 5.7% in the first 10 months of 2021 as electricity and natural gas tariffs were increased, and quarantine relaxation heated the retail market, exerting additional pressure on prices.

In Georgia, annual inflation accelerated to 12.8% in October 2021 on higher global food and oil prices and increased utility tariffs.

Average inflation in Kazakhstan was 7.9% in the first 10 months of 2021, with food prices up by 10.8%.

In Armenia, inflation accelerated to 6.9% in the first 10 months of 2021 on supply-side shocks, rising global commodity prices, and the lagged pass-through of currency depreciation in the period from October 2020 to April 2021.

In Tajikistan, inflation reached 9.6% in the first 9 months of 2021, reflecting seasonal factors and pandemic-related external supply shocks.

In Turkmenistan, trade disruption in 2020 hampered imports, causing shortages of food and other goods, with lagged consumer price increases extending into 2021.