According to the statement of the Ministry of Finance, the key rate was left unchanged in order to ensure that inflation will be within the forecast range until the end of the year.

General inflation showed a downward trend since the beginning of the year, and in June it was 9 percent annually. There has been no significant decline in the inflation of services due to continued high demand.

Core inflation, calculated without the effect of administrative and seasonal factors on prices, fell more slowly than expected and amounted to 11.3 percent in June. As a result, the difference between core and general inflation is increasing. Average annual inflation is also higher than current inflation.

"This situation shows that the influence of fundamental demand factors remains in price formation, demand and supply in consumer markets are not completely balanced, and it is also reflected in the high share of goods and services whose prices have increased by more than 10 percent in the consumer basket," the CB report reads.

The next meeting of the Central Bank Board to review the key rate is scheduled for September 14, 2023.