Minister: Kazakhstan should avoid rising inflation in 2011

Business Materials 10 May 2011 16:04 (UTC +04:00)

Kazakhstan, Astana, May 10 / Trend A.Maratov /

The Kazakh government should prevent inflation, Economic Development and Trade Minister Kairat Kelimbetov said on Tuesday.

"A high inflation will be a obstacle to foreign investment and reducing borrowed funds to expand production and capital accumulation," Kelimbetov said at a government meeting.

He said 2011 seems to be especially dangerous in terms of growing inflation. Prices for consumer goods and services rose by 4.2 percent in January-April compared to December 2010. The figure is 0.6 percent more compared to January-April 2010. The inflation rate in annual terms (in April 2011 compared to April 2010) amounted to 8.4 percent.

"The government should focus on prices in the food market and the petroleum products market," he added.

Kelimbetov said the Agriculture Ministry and regional mayors should not allow increases in food prices as a whole above the level of 9.5-10 percent by late 2011.

"The Oil and Gas Ministry and Industry and New Technologies Ministry should ensure control over the prices of petroleum products, coal, and conduct constant monitoring of prices in retail fuel sales to prevent unjustified price increase," he stressed.

However, he said, the situation on world commodity markets shows significant volatility.

"The world price on Brent oil reached $127 per barrel in early April. Now the price has fallen to below $110. This suggests a high probability for a sharp decline," he added.