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Kazakhstan shares forecast for inflation rate in coming years

Kazakhstan Materials 29 August 2023 05:00 (UTC +04:00)
Madina Usmanova
Madina Usmanova
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ASTANA, Kazakhstan, August 29. Kazakhstan expects the annual inflation rate to remain within the range of 10–12 percent in 2023, Galymzhan Pirmatov, the Chairman of the National Bank of Kazakhstan, said, Trend reports.

According to him, for the year 2024, the anticipated annual inflation is projected to be in the range of 7.5–9.5 percent, followed by a range of 5.5–7.5 percent in 2025.

However, he emphasized the need for readiness to maintain a stricter monetary policy in order to achieve the inflation target of 5 percent by the end of 2025.

Pirmatov said that factors such as fiscal policies, measures related to fuel pricing and utility tariff setting, and the balance between consumption and savings in the economy will significantly influence the inflation rate.

Among the main inflationary risks highlighted in the forecast are pressure on prices due to domestic demand, high inflation expectations, greater inflation growth in Russia, potential increases in global food prices due to the non-renewal of the "Grain Deal," as well as possible shocks to supply in domestic markets.

In July 2023, the annual inflation rate in Kazakhstan reached 14 percent (compared to 14.6 percent in June 2023). The monthly inflation rate for July of the current year stood at 0.6 percent.

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