Kazakh Economy Ministry, National Bank expect inflation to rise
By Kamila Aliyeva
The National Bank of Kazakhstan expects an increase in inflation next year. This was stated at a meeting of the government on September 4.
Since the beginning of the year the inflation rate has remained within the new corridor of 5-7 percent, according to the Kazakh Minister of National Economy Timur Suleimenov.
In August, inflation was 0.2 percent, since the beginning of the year - 2.9 percent. Annual inflation stood at the level of 6 percent.
“Since the beginning of this year, there has been a slowdown in price growth compared to the same period in 2017 for all components of inflation. The rise in prices for food products was 2.3 percent, non-food products – 3.6 percent, prices and tariffs for paid services - by 3 percent,” the minister said.
In the last three months there has been a decline in prices for food products. At the same time, the greatest increase in prices was fixed for non-food products. The increase in prices is noted for diesel fuel, footwear, liquefied gas, medicines and household appliances.
“Among the paid services, the largest increase in prices was recorded for air and railway transport services, legal services. Meanwhile, prices for car maintenance and hotel services have declined,” he said.
According to the minister, the weakening of the tenge will put pressure on prices and tariffs. Given the high correlation between prices and the national currency, the current rate of inflation may increase.
In turn, the chairman of the National Bank Daniyar Akishev noted that inflation in August was 0.2 percent. Compared with August last year, this is a high figure. In annual terms this is 6 percent more.
He also suggested that in 2019-2020 there will be an excess of inflation, inflation may be out of the given corridor.
This is due to the regime of sanctions against Russia, the weakening of the ruble, the decline in oil prices and the growth of social spending and loans. In this regard, he asked the government and local executive bodies to monitor the identification of markets associated with anti-Russian sanctions.
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Kamila Aliyeva is AzerNews’ staff journalist, follow her on Twitter: @Kami_Aliyeva
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