Inflation Pressures Have Substantially Eased in the CAREC Region

Inflation has further receded in most CAREC economies. Average CAREC annual inflation eased to 7.1% in January 2024 from its peak of 13.4% in February 2023 (Figure). Inflation came down to single-digit growth in Uzbekistan since June 2023, in Azerbaijan from July onwards, and in the Kyrgyz Republic after July. In Mongolia and Kazakhstan, inflation also receded to less than 10%, but only from October and December 2023, respectively. Inflation rates in the PRC and in Georgia were as low as -0.8% and 0.0% in January 2024. By contrast, Pakistan’s inflation rate was still as high as 28.3% yoy in January 2024, lower nevertheless than the readings of 31.5%-38.0% seen between February and May 2023. Tajikistan’s inflation rate remained relatively stable at 2.1%-5.0% yoy in 2023.

Figure. Inflation: Consumer price index (%, yoy)