Inflation in Kazakhstan continues to accelerate in September

By bne IntelliNews October 2, 2014

In September, the CPI inflation in Kazakhstan has accelerated to 7.4% y/y, up from 7.1% y/y in August, and 6.9% y/y in July, 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%.

Prices for non-food products were the main drivers of inflation as they increased by 8.4% accelerating from 8.1% y/y seen in August. We assume that higher petrol prices were the main reason for the growth in this segment. Prices for food and services advanced by 7.4% y/y 6.5% y/y respectively. Growth in prices for services would be higher but the government imposed price control policy after devaluation of the national currency.

Since the beginning of the current year, the rate of inflation has reached 5.9%. In m/m terms, the CPI inflation has accelerated to 0.5% after seeing a growth of 0.4% m/m in August and a mere 0.1% in July. Generally, prices for food in September went up by 0.3% m/m. On the other hand, prices for non-food products increased by 0.5% m/m and for services – by 0.7% m/m driven by higher prices for motor transportation (higher by 3.2% m/m).

The government’s target for the inflation corridor remains unchanged at 6-8% y/y this year which might be rather difficult to achieve given decrease in industrial production and pressure put on KZT by weakening RUR. In 2013, inflation stood at 4.8% y/y.


Inflation in September to

Jan-Sep 2014 to

Jan-Sep 2013


August 2014

December 2013

September 2013


Goods and services





Food products





Non-food products










Related Articles

Moldovan businessman Stati threatens to ask bailiffs to sell Kazakh Kashagan stake in legal battle

Moldovan businessman Anatolie Stati’s spokeswoman said on January 9 that Stati will ask bailiffs to sell a $5.2bn stake in the Kashagan oil field owned by Kazakh sovereign ... more

Kazakhstan cuts grain export forecast as Russia squeezes it out of markets

Kazakhstan has cut its grain export target for the 2017/2018 marketing season to 8mn tonnes of grain from the previously expected 9mn tonnes, Deputy Agriculture Minister ... more

Iran rejects idea that a Caspian Sea settlement is in sight

Iran’s foreign ministry has rejected the suggestion that the five littoral states that share the shore of the Caspian Sea have largely agreed to delineate its maritime borders and settle their ... more