Purchasing Power
Kyrgyzstan cereal production is relatively shielded from drought by its extensive irrigation infrastructure, and food supply is also stabilised by the government’s grain reserve. However, the country still imports 20-25% of its domestic needs, therefore exposing it to rising food prices on the international markets. This year, due to the drought effect in the Black Sea region, wheat flour prices spiked by 42% between June and September. Headline inflation was however limited to 1.1% M-o-M and 4.4% Y-o-Y. Meanwhile, unqualified labour wages increased by 5.1% in August, and by 17.1% over one year, thereby giving labourers additional purchasing power.
October 2012
Food Security