ASTANA, Kazakhstan, November 28. Kazakhstan’s annual inflation slowed to 12.6% in October from 12.9% in September, but persistent price pressures across most categories continue to challenge policymakers, the National Bank of Kazakhstan said, Trend reports.
Food inflation accelerated to 13.5% from 12.7%, while non-food prices rose 11%, up from 10.8%. Service inflation eased to 12.9% from 15.3%, largely due to administratively reduced tariffs for regulated utilities.
The bank said elevated inflation persists amid strong domestic demand that continues to outpace supply. Secondary effects from recent tariff reforms and fuel market liberalisation are also feeding into prices and inflation expectations.
Food prices remain the main driver of inflation due to market imbalances, firm demand, higher import costs and rising production expenses. Service inflation’s contribution has declined but remains sizeable. Non-food inflation picked up on higher fuel and pharmaceutical prices.
Monthly inflation slowed sharply to 0.5% in October. However, core inflation stayed high at 1% month-on-month, equivalent to an annualised rate of 12.2%. Around 80% of items in the consumer basket are rising faster than the central bank’s 5% target, underscoring the breadth and persistence of price pressures. Fiscal and quasi-fiscal stimulus, combined with strong consumer demand, continue to reinforce the trend, the bank said.
Inflation expectations among households rose to 13.6% in October from 13.2% in September. Long-term expectations also increased to 14.3%. The NBK said elevated expectations limit the pace of disinflation and make prices more sensitive to shifts in costs and demand.