Kazakhstan's annual inflation remains at 8.9% y/y in October

Kazakhstan's annual inflation remains at 8.9% y/y in October
By Kanat Shaku in Almaty November 4, 2021

Annual consumer price index (CPI) inflation in Kazakhstan stood at 8.9% in October, unchanged from September, according to data published by the country’s statistics office.

The figure marked a slowdown in the ongoing acceleration driven by annual food inflation, which stood at 11.3% in October - a slight slowdown from 11.5% in September. The double-digit food inflation rate is a result of global coronavirus pandemic-related restrictions while the impact of drought in agriculture may also have been a factor.

The regulator was previously aiming to achieve a 4% inflation rate in 2020, but consumer prices moved away from the upper boundary of the 4-6% inflation corridor that the central bank was maintaining. Inflation officially surpassed the 6% boundary in March 2020 and continued to rise due to the effects of the pandemic. The central bank raised its policy rate by 25bp to 9.75% in late October to curb inflationary pressures.

Non-food inflation stood at 7.8% in October, up from 6.8% in the previous month. 

Inflation in prices of services registered at 6.9% in October, down from 8.8% in September.