Kazakh inflation accelerates to highest since tenge devaluation

By bne IntelliNews June 2, 2016

Consumer prices in Kazakhstan rose 16.7% y/y in May, accelerating from 16.3% a month ago, the State Statistics Committee said on June 1. The latest reading brings inflation to its highest level since the devaluation of the tenge in August 2015, when it was allowed to float freely.

Despite the high rates of annual inflation, the country’s central bank expects the CPI to “fade” throughout 2016 to within the target of 6-8% as the pass through of devaluation to inflation, in its opinion, has ended.

On a monthly basis, consumer prices edged up 0.5% in May, a bit slower than the 0.6% hike seen in April. Consumer prices increased by 4.2% in May compared to December 2015.

Prices of foodstuffs went up by 0.4% m/m and 13.5% y/y in May and were higher by 4.3% compared to their level in December 2015. Prices of non-foodstuffs rose by 0.7% m/m and 27.3% y/y and of services by 0.5% m/m and 10.3% y/y.

Data from the statistics office also showed, producer prices for industrial goods climbed 3.2% m/m and 16.4% y/y in May and were 4.5% higher than in December 2015.

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