Kazakhstan's National Bank updates forecast for inflation

Kazakhstan's National Bank updates forecast for inflation

Baku. TurkicWorld:

The National Bank of Kazakhstan has improved the forecast for inflation in the country to 9.3-10.3 percent for 2023, TurkicWorld reports.

As the NBK explains, the revision of the forecast for 2023 is associated with a more moderate than expected increase in tariffs for housing and communal services and a more restrained increase in prices for non-food products.

At the same time, the forecast for 2024 was kept at the level of 7.5-9.5 percent, for 2025 – at the level of 5.5-7.5 percent.

Among the main risks of the inflation forecast for 2024-2025, the NBK identifies a possible increase in fiscal stimulus, unanchored inflation expectations, a possible increase in food prices due to the effect of a low harvest in 2023, as well as the direct effect of increasing tariffs for housing and utility services.

Inflation in the Republic of Kazakhstan slowed down over the year and amounted to 10.8 percent in October 2023 (in September–11.8 percent), over the month - 0.7 percent (previous month - 0.6 percent).

Prices for food products over the year increased by 10.4 percent (in September 2023 - 11.4 percent), for non-food products - by 11.1 percent (in September 2023 - 12.1 percent), for paid services - by 11 percent (in September 2023 – 11.9 percent).

Regionally in October 2023 in annual terms, the inflation rate exceeding the republican average was observed in nine regions, the highest of which were in Akmola (12.7 percent), North Kazakhstan (12.1 percent), and Zhetysu (11.7 percent) regions.