BAKU, Azerbaijan, March 28. The National Bank of Kazakhstan aims to continue to combat inflation against the backdrop of high real and projected inflation, a source at the National Bank of Kazakhstan told Trend.
The source added that the Bank expects inflation to subside gradually as a consequence of the policies currently being implemented. The improvement of the situation is expected to be achieved in the medium-term timeframe.
Earlier, the source said that the Bank expects medium-term inflation to be formed by 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 in prices for utilities and petroleum products. The source considers that these changes may accelerate the inflation of various categories of goods and services.
The Bank representative concluded by saying that the National Bank assessed the key external risks for the country’s economic performance, which include the trends on the international markets, inflationary expectations, and possible geopolitical risks, including the potential impact of sanctions on other states.
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.