BAKU, Azerbaijan, Sept. 7
Trend:
The National Bank of Kazakhstan expects a decrease in non-food inflation in the country by 5 percent in 2022 and 4 percent in 2023-2024, Trend reports, referring to the statement of Chairman of the National Bank of Kazakhstan Yerbolat Dosayev.
In order to fulfill the order of the Head of State to return inflation to the target range of 4-6 percent in 2022, the National Bank supports the measures aimed primarily at stabilizing non-monetary factors within the framework of a Set of anti-inflationary Response Measures.
"From January through August 2021, the main contribution to the escalating inflation rates was made by the increase in food prices, which reached the level of 11.4 percent. In order to reduce it to 8 percent by the end of this year, in accordance with the Set of Measures, the Government will take operational measures to eliminate seasonal shocks and imbalances in certain markets, not excluding effective temporary regulatory measures and antitrust impact," Dosayev said.
In order to achieve stable inflation in the middle term, the Government will implement initiatives to fully saturate the domestic market with strict compliance with the balance of production, export, and import of goods, increase the productivity of industrial agriculture and develop an effective commodity distribution system.
This will reduce food inflation to 6 percent in 2022 and 5 percent in 2023-2024. For non-food products, the main potential for restraining price growth is the fuel and lubricants market, which, in addition to the direct effect, has a significant indirect effect on other goods and services.
According to the head of the National Bank, the introduction of a predictable and balanced tariff policy on a medium-term basis is especially important for regulated services.
"From 2023, we consider beginning the transition from administrative regulation of prices to targeted support for socially vulnerable segments of the population. This will help stabilize service inflation at the level of 4 percent in 2022-2024. The effectiveness of the proposed measures will largely depend on the coherence and coordination of work in the regions," Dosayev said.