Inflation slows down to 11.8% in Kazakhstan

According to the Bureau of National Statistics, the price surge slowed down by 11.8% in September in Kazakhstan.

In August, the agency reported inflation of 13.1%. In September, this rate was 0.6% month on month, compared to 0.7% in August. In other words, the monthly price surge slowed down after increasing from 0.5% in June to 0.6% in July and 0.7% in August.

Food prices surged by 11.4% in September (12.4% in August), nonfood products reported a 12.1% increase (13.5% in August), and services by 11.9% (13.9% in August).

In terms of specific products cabbage (+74.3% year-on-year), rice (41.3%), grapes (37.9%), oranges (32.8%), and canned milk (26.4%) reported the highest price increase. In terms of regions, the Almola, Jetysu and North Kazakhstan regions accounted for the highest inflation rate: 13.2%, 12.7% and 12.6%, respectively.

Price growth in Kazakhstan has slowed down for seven months in a row. In March, the country’s government reported a price surge of 18.1% year-on-year against 21.3% in February. Last year, this rate amounted to 20.3%, which forced the National Bank to raise the base rate to a record level of 16.75%.

This year, the regulator talked about the possibility of easing monetary policy on three occasions. For example, when Timur Suleimenov was appointed in September as the new head of the National Bank in place of Galymzhan Pirmatov, he said that this was possible. In August, the regulator already decreased the rate to 16.5%.