Inflation hit 20.3% in Kazakhstan in 2022

Finance Materials 13 January 2023 15:27
Astana, Kazakhstan KazInform
Inflation hit 20.3% in Kazakhstan in 2022

Inflationary expectations continue accelerating in Kazakhstan, Chairman of the country’s National Bank Galymzhan Pirmatov said, Kazinform correspondent reports.

«Inflation follows a forecast trajectory. Monthly growth in consumer prices slowed down and stood at 1.2% December last year. Inflation was 1.8% in September, 1.6% in October, and 1.4% in November. Despite the slowdown, it still remains high and above the annual average. As of December 2022, the yearly inflation stood at 20.3%,» said Pirmatov during a briefing at the National Bank.

According to the Chairman, the country has been observing a slight rise in food and non-food prices. Paid services inflation remains unchanged amid the decreasing pieces for rent and suppression of the growth of regulated prices.

«One of the major concerns remains high stable inflation rate, showing a pro-inflationary environment. So, the deseasonalized base inflation rate stood at 22.2% by the end of 2022. Inflationary expectations continue accelerating. In December their rate hit new high since the polling. The median estimate of expected inflation was 21.3%,» said the Chairman of the National Bank of Kazakhstan.

According to the polls, growing food prices, external events and fuel prices were among the main factors. High inflationary expectations could lead to slower reduction of inflation in the future, said Pirmatov.

«In the absence of new shocks, the inflation is expected to reach a peak in the first quarter, to be exact, in February…Starting from March, we believe, the annual inflation is expected to decline. The current circumstances require maintaining the base rate at the current level long enough,» said the Chairman.

Earlier it was reported that the National Bank decided to keep the base rate at 16.75% starting from January 16, 2023.