Head of the National Bank names the reasons for rising prices in Kazakhstan

Tengrinews.kz – Food prices in Kazakhstan have risen by 13.5 percent over the year.
National Bank Chairman Timur Suleimenov explained the reasons behind this increase.

According to the National Bank, annual inflation in Kazakhstan reached 12.6 percent.

“Food prices increased by 13.5 percent, non-food products by 11 percent, and paid services by 12.9 percent,” Suleimenov said during a plenary session of the Senate.

He noted that the rise in prices is driven by several internal and external factors.
Among internal factors, in addition to strong demand driven by fiscal stimulus and consumer lending, are the increase in utility tariffs and the growth of fuel prices.

"External factors include the rise in global food prices, high inflation and the strengthening of the currency in neighboring Russia, as well as the ongoing uncertainty caused by trade restrictions in the world," the head of the National Bank said.

Suleimenov reminded that on October 10 the National Bank raised the base rate to 18 percent “to restore macroeconomic balance and prevent inflation from spiraling out of control.”

Additional measures are being taken to reduce inflationary pressure, stabilize inflation expectations, and strengthen tenge-denominated assets and the national currency.