#95: Inflation

Despite the optimism, Bakiev's impromptu dance last week did not help the country to feel more secure. Inflation is running high, hitting the worse off the hardest. A loaf of bread, for instance, went up from 5 to 7 soms (a 40% increase!). September is expected to be the worst month in terms of inflation. A ride in a marshrutka, an imitation of public transportation caused by government negligence, will probably rise too from 5 to 7 soms. So much to Bakiev's increases of salary and pensions!

However, it is not something that is happening today or this month. The salary that I earned a few years ago does not worth as much today. Two years ago rent fee for a single-room (studio) apartment was $50, today it is $150. Construction material (brick, cement, slate, etc.) costs twice as much. A kilo of beef went up from 130-150 to 180-200 soms. (38soms=1USD).

It is a nightmare for people who are paying loans (home, business, whatever have you). I have a big loan on my apartment. It makes harder for me to plan my expenses in the long term. Daily expenses are eating up a bigger slice of my salary, leaving less and less to pay the bank. Property costs twice as much now. All in all, Bishkek is becoming a very expensive city to live in.

More ammunition to the opposition, as well as another excuse to beat prime minister Atamabaev and his team, if he has one, by Bakiev's people. More protests?