Inflation in Kazakhstan may exceed its target level

Finance Materials 6 March 2019 14:06 (UTC +04:00)

Baku, Azerbaijan, Mar. 6

By Rashid Shirinov – Trend:

There are risks of inflation exceeding its target level in 2020 in Kazakhstan, Trend reports via Kazakh media.

The remarks were made by the Director of the Research and Statistics Department of the National Bank of Kazakhstan Vitaliy Tutushkin at a meeting with financial experts.

He noted that according to forecasts, the annual inflation in Kazakhstan will be in the new target band of 4-6 percent in 2019. Compared to the previous forecast (November-December 2018), the inflation trajectory has been adjusted downward, which is associated with a decrease in housing and communal services tariffs.

"There are risks of inflation exceeding its target level in 2020. It is assumed that, firstly, the positive effect of lowering tariffs for regulated services on inflation will be exhausted. Secondly, consumer demand will continue to grow amid rising minimum wage and decreasing individual income tax for low-paid categories of workers," Tutushkin explained.

He also noted that the dynamics of world food inflation will have an impact on the growth of food inflation in Kazakhstan in the future.


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