The annual inflation in Kazakhstan

The annual inflation in Kazakhstan as of October 2023 reached 10.8%, with a slight 0.7% increase in October, according to information from the National Statistics Bureau reported by Kapital.kz, a business information center.

Over the year, prices for household items increased by 10.4%, niche services by 11%, and non-food items by 11.1%. Compared to October 2022, in October 2023, there was a rise in cabbage prices by 69.1%, rice by 40.3%, grapes by 46.7%, oranges by 28.1%, carrots by 22.4%, and canned milk by 22%. Prices for paracetamol increased by 70%, acetylsalicylic acid by 32.3%, and iodine by 21.5%. Diesel fuel experienced a notable rise of 35.1%, while liquefied gas and coal increased by 12.8% and 12.6% respectively. Tariffs for waste removal witnessed a significant increase of 32%, and wastewater disposal by 27.6%. Conversely, buckwheat experienced a drop in price by 20.1%, granulated sugar by 16%, and sunflower oil by 16.2%. A fall in prices was observed for cleaning products by 0.6%.

In October 2023, the monthly consumer price index slightly increased to 0.7%, compared to 0.6% in September. Prices for paid services and non-food items increased by 0.8%, while household products rose by 0.5%.

In the realm of niche services, housing rent prices increased by 2.3%, hotel services by 2.2%, and comprehensive leisure organization services by 2.1%. Rates for wastewater disposal grew by 3%, while waste removal increased by 1.5%. A fall in costs was observed for cleaning products by 0.6%.

Price rises in October 2023 were noted for coal by 2.3%, and firewood by 0.8%. Premium gasoline (AI-98) rose by 3.7%, while AI-95/96 gasoline increased by 1.5%. Prices for TVs rose by 8.3%, laptops by 6%, and electric heaters by 4.7%. Among food products, tomatoes' prices experienced a rise by 9.6%, eggs by 5.5%, cucumbers by 5.3%, flour by 4.3%, confectionery by 1.3%, and bread by 1.2%. There was also a rise noted for tobacco products by 2.1%, alcoholic beverages by 1.2%, and mineral and drinking water by 0.9%. Conversely, vegetables experienced a fall in price by 1.8%, sunflower oil by 0.9%, and cereals by 0.8%.

Among the regions, the highest monthly inflation was registered in Shymkent – 1.1% (0.4 percentage points above the national average), and the lowest – in Almaty, Zhambyl, and Kyzylorda regions at 0.4%.

Regionally, prices for household items rose the most in Shymkent by 1.8%, non-food items in Mangystau region by 1.8%, and niche services in Atyrau region by 2.5%.

Experts anticipate putting up interest rates to cut costs as inflation hits a peak of 10.8%. They predict that in the upcoming months, prices will fall, bringing inflation rates to come down. This strategy aims to counteract price rises by slightly cutting wages, allowing prices to come down gradually. Mortgage accounts will likely see much lower interest rates to support economic stability."