BAKU, Azerbaijan, July 26
Trend:
The annual inflation rate amounted to 7.9 percent in Kazakhstan in June 2021, Trend reports with reference to the National Bank of Kazakhstan (NBK).
In May 2021, this figure was 7.2 percent, the NBK added.
"Upon the realization of risks, there was an increase in all components of inflation. A significant, uncharacteristic for the summer months, a 1.1-percent rise in prices in June 2021 is the maximum value for this month since 2009," the bank said.
"Food inflation accelerated to 10.6 percent in June 2021 and continued to be the main contributor to headline inflation. This is due to a sharp rise in the price of vegetables, especially, potatoes, carrots, and beets," the NBK said.
"This growth is a record one and is observed not only in Kazakhstan but also in neighboring countries (Russia, Uzbekistan, Tajikistan). In general, food price increases have been reported around the world. Thus, the FAO food price index in June 2021 showed an increase of 33.9 percent in annual terms," according to the NBK.
"The non-food component of inflation accelerated to 6.9 percent in June 2021 amid the realization of the risks of the effect of deferred demand. The annual growth rate of gasoline prices continued to accelerate amid rising producer prices and continued recovery in demand," the report said.
"The recovering consumer demand also contributed to the rise in prices for clothing, footwear, cars, household appliances, and furniture. Additional pro-inflationary pressure on non-food products is exerted by rising prices for imports amid accelerating inflation in trading partner countries and rising world prices for raw materials and intermediate materials," the NBK said.
"The annual growth in prices for chargeable services to the population amounted to 5.6 percent in June, which was associated with an increase in the cost of both regulated and unregulated services. There has been an annual increase in prices for air transport services, travel services (sanatoriums, holiday homes, travel abroad), personal care services, and home renovation services," the report said.
"The inflationary expectations of the population remain unstable. In June, the quantitative estimate for the year ahead increased and amounted to 7.3 percent. The share of respondents who noted a very high rise in prices over the past month reached an all-time high, rising to 59 percent (49 percent in May). Also, in June, the share of respondents who noted an increase in food prices rose up to 87 percent," the NBK added.