Food inflation accelerates to 19.7% in Kazakhstan
«In July, the growth rate of monthly inflation in Kazakhstan slowed down from 1.6% (June) to 1.1%, although it still remained at a high level,» Akylzhan Baimagambetov said at the Government’s meeting today.
He said that price deceleration occurred under the influence of a seasonal cheapening of fruits and vegetables. «The ongoing demand in economy amid expansionary fiscal policy, the pressure in the external and domestic sectors of economy in the conditions of geopolitical tensions and associated market imbalances hamper more significant price deceleration,» he explained.
Annual inflation in July increased from 14.5% to 15%. At the same time, rising food prices account for more than half of the inflation. Food inflation accelerated from 19.2% to 19.7%, and non-food inflation speeded from 13.2% to 14.2%.
Inflation in paid services remained at 9.2% due to the effect of a high base in 2021, although monthly growth rate was relatively high. Thus, inflationary pressure in economy stands at a high level, he added.
Akylzhan Baimagambetov reminded that with the consideration of acceleration of inflation and inflationary expectations, their stability, fiscal stimulation of demand and the external pro-inflationary background, on July 25, 2022 the National Bank took a decision to increase the base rate from 14% to 14.5%. This will gradually affect inflation throughout the coming year.