Annual inflation rate slightly slows down in Kazakhstan

Kazakhstan Materials 6 December 2021 15:47 (UTC +04:00)
Annual inflation rate slightly slows down in Kazakhstan

BAKU, Azerbaijan, Dec. 6


The annual inflation rate slightly slowed down in Kazakhstan as of November 2021 and reached 8.7 percent compared to 8.9 percent in October 2021, Trend reports on Dec. 6 referring to the Kazakh media.

This dynamics was stipulated by the slowdown in the growth of prices for food products from 11.3 percent to 10.9 percent and paid services from 6.9 percent to 6.4 percent.

The growth of prices for food products slowed down amid stabilization of monthly dynamics and the base effect of the previous year as a result of disinflation for oils and fats, sugar, and eggs.

The prices for bakery products and cereals, meat products were still high in November 2021, which is associated with the increased costs of producers, a decrease in the gross harvest of grain crops.

The annual non-food inflation accelerated from 7.8 percent to 8.3 percent in November 2021 as a result of the continued growth in prices for fuels, lubricants, and solid fuels.

The annual growth in consumer prices for fuels and lubricants reached 22.3 percent (monthly growth - 4.3 percent). The cost of gasoline increased by 18.4 percent (monthly growth - 2.4 percent), diesel fuel - by 46.6 percent (monthly growth - 14.6 percent). The fuel prices grew amid an increase in producer prices.

The annual growth rate of prices for paid services in November 2021 slowed down to 6.4 percent due to a slowdown in the growth of prices for utilities, catering services, hair services. The housing rental prices increased.

According to the National Bank's estimates, the seasonal adjusted annualized consumer price growth has recently slowed down since a peak level in June, amounting to 5.6 percent in November 2021 (in October - 7.1 percent).

Monthly estimates of the annualized core inflation show the formation of inflationary processes for the second month in a row within the target band of 4-6 percent.

The dynamics of sustainable components in the target corridor in December 2021 and 2022 are important. In this regard, uncertainty about the stability of these dynamics amid unstable and high inflationary expectations has been observed.