National Bank forecasing food prices raise

Kazakhstan National Bank is forecasting an increase of prices for fruits, vegetables, eggs, milk and meat products, clothes, shoes and some of public utilities in Q4 2011 (October-December). The forecast states that the prices raise in the last month of the year is “related to the seasonal factor and increase of demand before the holidays.” According to the National Bank, prices for fuel will be set with consideration of “the stable increasing dynamics of oil prices in the world.” Taking into account that fuel is used in production of certain types of goods and services, this may contribute to growth of production costs and final cost of goods and services. Inflation in Q4 2011 is expected at the level of 1.8-2.0 percent. Inflation forecast for Q3 (July-September) is 0.6-0.8 percent.