Inflation continues to slow down in Kazakhstan

In November, Kazakhstan reported 10.3% inflation compared to 10.8% in October year-on-year or 1% in November, and 0.7% in October month-on-month, according to the Bureau of National Statistics.

Food prices have risen by 9.2% over this year or 10.4% in October year-on-year; non-food prices rose by 9.9% over the year and 11.1% in October year-on-year and paid services rose by 12% over the year and 11% in October year-on-year.

In November 2023, prices grew by 37.3% compared to November last year. For instance, mineral and table water prices rose by 19.8%; preserved milk –18.4%, heat-treated milk –15%, fruits and vegetables – 14.4%, kefir – 14.3%, bakery wares and pastries – 13.6%, butter – 13.2% and eggs – 11.6%. On the other hand, buckwheat prices declined by 20.9%, sand sugar – 16.9% and sunflower oil – 16.4%.

In its October report, the bureau reported price surges for cabbage (+69.1%), grape (+46.7%), rice (+40.3%), oranges (+28.1%), carrot (+22.4%), preserved milk (+22%), mineral water (+21.1%), non-carbonated drinks (+21%), heat-treated milk (+17.2%), kefir (+16.3%), sour cream (+15.6%) and bakery wares and pastries (+14.6%) compared to October 2022. At the same time, prices for buckwheat dropped by 20.1%, sunflower oil – 16.2% and sand sugar – 16%.

The country’s government adopted a set of measures aimed at controlling and lowering inflation in 2023-2024 in April this year. At the time, the inflation was 18.1%.

According to National Economy Minister Alibek Kuantyrov, the surge in inflation started at the end of 2022 due to high demand in the domestic and foreign markets.

On November 27, the National Bank of Kazakhstan lowered the base rate by 0.25 percentage points to 15.75%. This cut of the base rate was the third sush move over the period from December 2022 to July 2023 when the rate was at its peak of 16.75%.