CPI inflation in Kazakhstan accelerates to 6.9% y/y in May.

By bne IntelliNews June 2, 2014

In May, the CPI inflation in Kazakhstan has accelerated to 6.9% y/y from 6.5% registered in April and 6.2% y/y seen in March, the Statistics Agency has reported. Acceleration of inflation is driven by sharp depreciation of Kazakh national currency KZT on Feb 11. National Bank of Kazakhstan decided to stop supporting KZT which led to de facto devaluation of around 20%.

Since the beginning of the current year the rate of inflation has reached 4.5% ytd. In m/m terms, the CPI inflation remained at the same level as it was seen in April – 0.6% m/m. Thus, in May, a stagnation in prices was seen. Prices for food in May rose by 0.8% m/m (slowdown against April), for non-food products by 0.6% m/m, paid services by 0.3% m/m.

We assume that growth in prices would have been higher but the authorities took measures to ease burden of price hike for the society. One of the examples is government’s moratorium on tariff changes until May. However we would expect further acceleration of inflation given raises in wages starting from Apr 1. The government’s target for the inflation corridor remains unchanged at 6-8% y/y this year.

Related Articles

Controversial Czech company threatens Kyrgyzstan with arbitration for loss of hydro contracts

Czech company Liglass Trading has threatened Kyrgyzstan with international arbitration for the annulling of contracts to build and run 12 hydroelectric power plants, Reuters ... more

Kazakh president’s meeting with Kyrgyz presidential candidate raises controversy

Kazakh President Nursultan Nazarbayev on September 19 caused a stir by meeting with a leading Kyrgyz presidential candidate, Omurbek Babanov, ahead of the Kyrgyz elections scheduled for October 15. ... more

Kazakhstan to issue Islamic bonds worth $300mn in 2018

Kazakhstan will issue Islamic bonds, or Sukuk, worth $300mn in 2018, the Astana Times reported on September 15 citing Kazakh president Nursultan Nazarbayev’s ... more