"The inflation forecasts for the Caucasus and Central Asia are raised from 8.8% to 11.3% for 2022 and from 7.1% to 8.1% for 2023,” says the Asian Development Outlook 2022 Supplement.

"The further rise in global commodity prices and supply chain disruptions because of the war in Ukraine has added to inflationary pressures that were already prevalent in the subregion. Inflation forecasts are raised for Azerbaijan, Georgia, Kazakhstan, and Uzbekistan.

Azerbaijan’s inflation rate rose to 12.6% in May due to higher food prices because of supply disruptions amid the war in Ukraine and price increases in trading partners,” reads the report.

Average annual inflation in Georgia rose to 12.7% in May, driven by higher food, transport, and utility prices.

In Kazakhstan, average annual inflation accelerated to 11.3% in the same month, with food prices rising by 14.5%, non-food by 10.2%, and services by 8.1%. The Russian Federation’s ban on wheat and sugar exports caused shortages and price increases of these commodities in Kazakhstan. Inflation in Uzbekistan rose to 10.2% in the first 5 months of 2022.

"The liberalization of wheat prices and an expected rise in utility prices, coupled with the economic impact of the war in Ukraine, will accelerate inflation in 2022,” the ADB said.

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