Cost of Living - The Times Of Central Asia

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Inflation

Kyrgyzstan Inflation Hits 12% as Government Plans Food and Fuel Measures

Kyrgyzstan plans to curb rising prices by importing livestock and grain, subsidizing fuel, and increasing domestic food production. The draft plan for 2026-2027 comes after annual inflation reached 12% in August, alongside double-digit economic growth. The Ministry of Economy and Commerce published details of the draft plan on September 21. In 2027, the government aims to keep inflation within 7.7-8.5%. Without additional measures, the ministry estimates that inflation could reach 8.7-9.5% in 2027 because of global prices, external shocks, and supply disruptions. Annual inflation had already reached 11.5% in July, up from 11% a month earlier, before rising to 12% in August, according to the National Statistical Committee. The medium-term target of the National Bank of the Kyrgyz Republic, the country’s central bank, is 5-7%. Much of the plan focuses on food. The state-owned Kyrgyz Agroholding is expected to import at least 20,000 head of cattle from Kazakhstan, Belarus, and Russia, adding at least 2,700 tons of meat to the domestic market. After prices rose in 2025, the authorities imposed limits on the cost of certain types of meat and temporarily banned livestock exports. The draft calls for the construction of four large poultry complexes and 200 livestock facilities with a combined capacity for 10,000 animals. Kyrgyz Agroholding is expected to open 100 direct-sales outlets for meat and agricultural products. The area planted with corn and oilseed crops would be expanded, while 11 trade and logistics centers would be built to store agricultural produce. The draft also calls for flour mills to import 700,000 tons of wheat from Russia and Kazakhstan. The ministry says the imports are intended to ensure that domestic wheat demand is fully covered. The government is also subsidizing fuel. Kyrgyzstan remains heavily dependent on imported petroleum products, with Russia supplying more than 90% of its imported gasoline, meaning higher import costs quickly feed into transportation, food, and service prices. The state compensates importers for part of the difference between purchase costs and regulated retail prices. The subsidies have been extended through December 31, 2026. In Bishkek and the Chuy region, agreed maximum retail prices are 87.9 soms per liter for AI-92 gasoline, about $1; 99.9 soms for diesel; and 48.8 soms for liquefied petroleum gas. Prices are capped at slightly higher levels elsewhere in the country. Without compensation, AI-92 would cost an estimated 111-118 soms per liter and diesel 125-137 soms. A one-year moratorium on increases in a number of regulated tariffs and payments for the population has also been in effect since July 24. High inflation persists alongside rapid economic growth. First Deputy Chairman of the Cabinet of Ministers Daniyar Amangeldiev said GDP had grown by an average of 10.2% annually over the past four years. GDP per capita increased from $1,230 in 2020 to $3,080 in 2025, while the economy grew by another 11% in the first eight months of 2026. In 2025, 1.779 million people, or 24% of the population, remained below the national poverty line, down from 25.7% a year earlier. On...

Wages

Turkmenistan’s Wage Puzzle: Official Salaries Rise, but Transparency Remains Elusive

In most Central Asian countries, checking the average salary is as simple as visiting the national statistics agency’s website. In Turkmenistan, however, wage data remain largely inaccessible. The State Statistics Committee does not publish salary figures online, and its annual statistical yearbooks are available only in printed form inside the country. Nevertheless, occasional official figures emerge, offering a glimpse into a labor market that differs markedly from those of its regional neighbors. As of January 1, 2025, Turkmenistan’s monthly minimum wage stands at 1,410 manats, equivalent to approximately $403 at the official exchange rate. An increase was introduced by presidential decree in July 2024 as part of a nationwide 10% rise in wages, pensions, and social benefits. The minimum wage was about $366 in 2024, and roughly $331 in 2023 at the official exchange rate. Unlike neighboring economies, where wages are increasingly shaped by labor-market conditions, inflation, and private-sector demand, Turkmenistan’s minimum wage is established exclusively by presidential decree and applies uniformly across all sectors, occupations, and age groups. The centralized system leaves little room for market-based wage formation. Although comprehensive official wage statistics remain unavailable, one rare set of figures attributed to the State Statistics Committee was published in 2017. According to those figures, the country’s highest-paid employees worked in the Merchant Marine Fleet, earning 2,387.6 manats per month, or about $682 at the official exchange rate then in use. They were followed by the National Space Agency under the President of Turkmenistan, at 1,909.9 manats, or about $546, and the state-owned Turkmenneft oil company, at 1,861.4 manats, or about $532. The lowest salaries were reportedly paid to employees of the Ministry of Trade and Foreign Economic Relations. The ranking, although dated, is revealing. Rather than finance or technology, which dominate wage tables in many countries, Turkmenistan’s highest-paid sectors in that snapshot were closely tied to state prestige projects and strategic natural-resource industries. A key factor complicating any assessment of income is the country’s dual exchange-rate system. The official rate has long been fixed at about 3.5 manats per U.S. dollar, which is used to calculate salaries in dollar terms for international reporting. However, the parallel market rate is substantially weaker, reducing the real international purchasing power of household incomes. Consequently, official salary figures converted into dollars should be interpreted with caution because they do not necessarily reflect the exchange rate available to ordinary citizens. The gap between official wages and actual living costs also appears significant. While the government continues to subsidize basic food staples such as bread and flour, shortages have often forced households to buy goods in private markets at much higher prices. Free natural gas and water supplies ended in 2019, and utility costs have gradually increased since then, despite continuing subsidies. Public cost-of-living data should be treated carefully, but they point in the same direction. The user-submitted database Numbeo estimates monthly costs for a single person in Ashgabat at about 6,475 manats before rent, more than four times the official minimum wage. Regional comparisons...

Household spending

Food Spending Remains High in Kazakhstan Households

A high share of household spending on food remains a key indicator of living standards in Kazakhstan, according to analysts at Finprom.kz. By the end of 2025, average annual spending on food and non-alcoholic beverages reached $1,292 per person, up 13.9% year-on-year and nearly six times higher than in 2010. At the same time, the structure of spending has remained largely unchanged. In 2025, food accounted for 47.8% of total expenditures, only slightly below the pre-pandemic level of 50.4%. As a share of income, food expenditures rose to 42.5%, compared to 40.7% a year earlier, suggesting that income growth is being largely offset by inflation. Consumption patterns also remain relatively rigid. Meat and meat products account for 34.4% of food spending, approximately $444 per person, with prices in this category rising by 18.1% over the year. Bread and cereal products (14.7%) and dairy products (10.6%) also make up a significant share. Combined, these categories account for about 60% of total food expenditures. Spending on fruit and vegetables is increasing in absolute terms by 15.3% and 22.8%, respectively, but their shares remain relatively low at 9.1% and 7.7%, pointing to limited diversification in consumption. Fish and seafood account for 4.4% of spending, and eggs for 2.1%, further reflecting a concentration on staple foods. According to analysts, inflation remains the main driver of rising expenditures. In February 2026, prices for food and non-alcoholic beverages increased by 12.6% year-on-year, compared to 6.3% a year earlier. This level is close to the highest rates recorded over the past decade, with the exception of February 2023, when growth reached 26.4%. Analysts warn that if current inflation trends persist, the share of spending on food in 2026 could again exceed 50%, limiting households’ ability to spend on non-food goods and services and placing additional pressure on living standards.

household income

Kazakhstan Targets Growth in Real Household Income

The government of Kazakhstan plans to increase real household income by 2–3% by 2029, according to the Ministry of National Economy. The program includes measures to stimulate employment, raise wages, support entrepreneurship, and create sustainable jobs. Key priorities include increasing wages for public utility workers, civil servants, and agricultural workers; expanding the share of wages in GDP; creating jobs in the manufacturing sector; supporting export-oriented enterprises; and reducing the financial burden on households. The ministry said 2026 will be a pivotal year for establishing sustainable income growth. A joint plan by the government, the National Bank, and the Agency for Regulation and Development of the Financial Market aims to reduce inflation to 9-11% in 2026, 5.5-7.5% in 2027, and 5-7% in 2028. Authorities expect that slowing inflation will increase the purchasing power of incomes. Inflation has already declined from 12.9% in September 2025 to 11% in March 2026. From April 1, tariff policy will be implemented more cautiously. The ministry estimates that tariff increases will add no more than 0.35 percentage points to inflation. At the same time, electricity and transportation tariffs for producers of socially significant goods are set to be reduced by up to 70%. The government also plans to limit the growth of budget expenditures, with their share of GDP expected to decline to 15.1% in 2026. Reductions in transfers from the National Fund will continue, and for the first time in five years, the budget is expected to be executed without targeted transfers. In 2025, targeted transfers from the fund amounted to approximately $6.9 billion, while the guaranteed transfer for 2026 has been set at $5.8 billion. According to the National Statistics Bureau, nominal household income grew by 10.2% in 2025, while real income declined by 1.1%. Average per capita income stood at approximately $506. The ministry noted that the decline in real incomes indicates that economic growth is not sufficiently translating into improved living standards, underscoring the need for additional measures to create jobs and raise wages. The Times of Central Asia previously reported that Prime Minister Olzhas Bektenov called for increasing the share of wages in GDP to 40%.

Cost of Living

Cost of Living in Uzbekistan Remains Moderate in Regional Context

Uzbekistan ranks third among Central Asian countries in terms of cost of living, according to the latest data from Numbeo. With an index score of 24.2 on a 100-point scale, Uzbekistan maintains relatively low living expenses by global standards, though costs remain lower than in Kyrgyzstan (25.4) and Kazakhstan (26.6). The estimated monthly expenses for a family of four in Uzbekistan, excluding rent, are approximately 21 million UZS ($1,743.31), while the average per-person cost stands at 5.6 million UZS ($464.88). Compared to the United States, Uzbekistan’s overall cost of living, including rent, is 65.2% lower. Rent alone is 71.1% cheaper. Regional Comparisons In a comparison of major cities, living in Almaty, Kazakhstan, is 6.8% more expensive than in Tashkent, excluding rent. Including rent, the cost difference narrows to 5.9%, with rent prices in Almaty 3.5% higher. Restaurant prices are 17.5% higher in Almaty, while grocery costs are 1.3% lower. Local purchasing power is 5.5% stronger than in Tashkent. Bishkek, Kyrgyzstan’s capital, is marginally cheaper than Tashkent, with the overall cost of living 0.5% lower excluding rent and 4.8% lower when rent is included. Rent in Bishkek is 15.7% cheaper, restaurant prices are 1.9% lower, and groceries cost 7.4% less. However, Bishkek’s local purchasing power is 21.3% lower than in Tashkent. In Dushanbe, the cost of living is 0.8% higher than in Tashkent without rent, but 7.7% lower when rent is included. Rent prices are 29% lower, restaurant prices are 13.4% cheaper, and groceries are 18.3% more expensive. Local purchasing power in Dushanbe is significantly lower, 50.9% below that of Tashkent. Ashgabat, the capital of Turkmenistan, stands out as the region’s most expensive city. The cost of living there is 261.4% higher than in Tashkent without rent and 208.5% higher when rent is factored in. Rent prices in Ashgabat are 77.6% higher, restaurant prices are 242.4% more expensive, and groceries cost 291.3% more. Despite the elevated costs, local purchasing power in Ashgabat is 58.5% lower than in Tashkent.

Cost of Living

Almaty Named as the Most Expensive City in Central Asia

Analysts at Finprom.kz, citing the latest Numbeo report on global cost-of-living data, have identified Almaty as the most expensive city in Central Asia. Global Leaders and Regional Rankings Numbeo’s index is based on user-submitted data on the cost of food, transportation, utilities, and housing, benchmarked against New York City, which is assigned a baseline score of 100 (excluding rent). Scores above 100 indicate higher living costs than New York. Swiss cities once again dominated the top of the list. Zurich (112.5), Geneva (111.4), Basel (110.7), Lausanne (110.5), Lugano (108.4), and Bern (103.4) all surpassed New York, which came in seventh. Rounding out the global top ten were Reykjavik (96.2), Honolulu (94.4), and San Francisco (90.7). Almaty ranked 346th globally, with a score of 29.4, while Kazakhstan’s capital, Astana, placed 366th at 26.5. Astana’s cost of living aligns closely with Bishkek (26.8) and Tashkent (26.2). While the cost-of-living index measures expenses, Numbeo’s Purchasing Power Index reflects how well local wages cover those costs. Astana rose to 59.4 (up from 45.3 in 2020), and Almaty reached 55.9 (up from 36.3). Both cities now surpass their regional peers: Tashkent (49.3) and Bishkek (40.4). While Kazakhstan remains significantly more affordable than many developed countries, a factor that may appeal to tourists, the lower cost indexes also reflect modest local income levels. Nonetheless, the improved purchasing power in Astana and Almaty signals a positive economic trend, positioning them ahead of neighboring capitals.