Kazakh food prices fall 0.1% in July, government tightens stabilisation measures
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Kazakhstan recorded a 0.1% decline in its socially significant food price index over three weeks of July, the first such drop this year. The government, led by Deputy Prime Minister Serik Zhumangarin, discussed further stabilisation steps at a meeting on Tuesday. The decline comes even as meat prices, including lamb and horsemeat, continue to climb.
Seasonal Price Drop
The decline was driven by falling prices for vegetables and eggs. Tomatoes fell 15.1%, cucumbers 18.2%, carrots 5.2%, and eggs 2.4% in the last week, according to First Vice Minister of Trade Aizhan Bizhanova. July and August are traditionally periods of seasonal stabilisation for staple foods, she noted. Annual inflation in June was 10.3%, down slightly from 10.4% in May, but above the national average in 11 regions, with highest rates in Zhetisu, Ulytau, North Kazakhstan, and Akmola regions.
New Production Support
The government plans to commission three vegetable oil refining plants by year-end to boost sunflower oil supply. A regulatory act providing discounted electricity tariffs for 40 bakery enterprises will take effect soon, aimed at reducing production costs for bread. National railway company Kazakhstan Temir Zholy is offering a 70% discount on domestic rail transport of socially significant food products, with local authorities tasked to monitor compliance and prevent unjustified price hikes.
Meat Market Scrutiny
Despite the overall dip, meat prices rose: lamb up 2%, horsemeat 1.3%, and minced meat 0.6%. Deputy Prime Minister Zhumangarin ordered a detailed analysis of the meat production market, including output volumes, domestic consumption, and exports, to inform further government action. He also instructed ministries and akimats to meet major wholesalers and importers to identify barriers and develop support measures in exchange for price stability commitments.
What's Next
Local executive bodies are to ensure monitoring of subsidised rail shipments, with new electricity tariffs for bakeries set to come into force shortly. It remains unclear whether these measures, combined with the ordered supply-chain probes into non-food goods and services, will be sufficient to bring annual inflation below the 10% mark.
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Kazakh food prices fall 0.1% in July, government tightens stabilisation measures
