Kazakhstan reports inflation slowdown as tenge strengthens
Kazakhstan's annual inflation rate is projected to slow to 10.5% in April, according to the National Bureau of Economic Research. This deceleration is attributed to the strong tenge reducing imported inflation. However, internal price pressures persist despite the headline figure improvement.
Inflation Figures
The National Bureau of Economic Research forecasts that annual inflation in Kazakhstan will slow to 10.5% in April, with a monthly rate of 0.6%. The slowdown is primarily due to the strong tenge, which reduces the impact of imported inflation. Despite this, the monthly inflation rate remains above the neutral level, indicating ongoing internal pressures.
Sectoral Impact
Service sector inflation is losing momentum, while food and non-food items converge around 11.3%. The strong tenge helps mitigate cost pass-through into prices, but the internal dynamics show resilience. The market focuses on annual figures, while businesses are more influenced by monthly trends, affecting pricing behavior.
What's Next
The inflation rate could slow to 9.8% by the end of the year. It remains unclear if the food sector risks will be fully addressed.
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Kazakhstan reports inflation slowdown as tenge strengthens
