Prime Minister Smailov wants the cabinet to cut inflation by half

This year, the inflation rate in Kazakhstan should be reduced by half from 20.3% to 9.5%, according to Prime Minister Alikhan Smailov.

«We have a task. We need the inflation rate to decline by half this year. The rate should be about 9.5%. This is not an easy task, that’s why we have to coordinate and act smoothly,» he said.

According to the official, the key driver of the inflation rate is food prices. Thus, in December last year, food prices showed a 1.6% growth as compared to November 2022.

«This is a sign that authorized agencies and local administrations do not pay much attention to the problem,» he underscored.

Last year, the country’s National Bank raised the base rate six times: in January (from 9.75% to 10.25%), in February (to 13.5%), in April (14%), July (14.5%), October (16%) and December (16.75%). Now the regulator forecasts that inflation will reach its peak in the first quarter of 2023.