Chairman of the National Bank of Kazakhstan, Timur Suleimenov, said that monthly inflation in Kazakhstan still exceeds the historical average by two times.
At the moment, annual inflation, despite a gradual decline, will remain at a high level of 11.8% in September 2023, significantly exceeding the target, causing a rise in the cost of food products.
“In addition to annual inflation, which is accumulating rising prices over the past 12 months, it is important to take into account the dynamics of monthly inflation, which indicates the current inflationary processes,” Suleimenov said.
“Monthly inflation still exceeds the historical average twice (0.6% in September this year),” he added.
“An analysis of the current and future situation in the external and internal sectors of the economy shows that in the medium term, inflation will approach the target of about 5% (in 2023: 10-12%, in 2024: 7.5-9.5%, in 2025: 5.5-7.5%),” according to the Chairman of the National Bank of Kazakhstan forecasts.
“Currently, there are still pro-inflationary risks, among which it is necessary to highlight increased fiscal stimulus, stable domestic demand, consumer lending, and high and unstable inflation expectations,” he noted.
It is reported that the monetary policy committee of the National Bank of the Republic of Kazakhstan decided to reduce the base rate to 16%.