BAKU, Azerbaijan, March 21. The National Bank of Kazakhstan expects external inflationary background to remain disinflationary in 2023, a source at the National Bank told Trend.
The Bank expects medium term inflation to be formed both external and internal factors. Among the internal factors that the institution closely monitors, the source cites high inflationary expectations, remaining fiscal impulse, and the adaptation of domestic prices to foreign markets.
An additional layer of inflationary pressure may come from the expected change of prices for utilities and petroleum products. The source considers that these changes may accelerate inflation of various categories of goods and services.
The representative of the National Bank concluded by saying that some conditions that will enable the inflation to reach the target range will include the effectiveness of the national economy, the level of dollarization, development of financial markets, availability of goods and a balanced fiscal and monetary policy.
Currently, inflation in Kazakhstan amounts to 21.3 percent in February 2023, compared to 20.7 percent in January 2023. Inflation in February reached 1.3 percent, which is significantly higher than the aggregate February average of 0.6 percent registered during the previous five years.