Annual consumer price inflation in Kazakhstan slowed to 7.1% in July from the 17.7% rate experienced in July 2016, the State Statistics Committee said on August 1.
The moderation was in line with the Kazakh central bank’s expectations. It had predicted inflation would gradually slow to come close to the official target of 8% by the end of 2016 and stay within the range of 6%-8% in 2017. The bank is also expecting the rate to ease to 5-7% in 2018 and 4-6% in 2019.
In accordance with the expected easing in the growth of consumer prices, the bank cut its key interest rate by one percentage point to 11% in February. The bank has cut its rate by a cumulative 600 basis points since it started its easing cycle in May 2016.
On a monthly basis, consumer prices edged up 0.1% in July. Prices of foodstuffs went down by 0.5% m/m and up 8.6% y/y in the month. Prices of non-foodstuffs rose by 0.4% m/m and 7.7% y/y, while those of services increased by 0.5% m/m and 4.7% y/y.