Kazakhstan: Inflation comes in at highest level since November 2016 in August
September 2, 2021
Consumer prices rose 0.47% in August over the previous month, after the 0.67% increase recorded in July. August's result marked the weakest reading since September 2020. The cooling of price pressures was primarily driven by softer growth in prices for foodstuffs.
Inflation ticked up to 8.7% in August, following July’s 8.4%. August's reading was the highest inflation rate since November 2016. Annual average inflation rose to 7.5% in August (July: 7.4%).
In light of high inflation and the annual address to the nation by President Tokayev, Artem Zaigrin at SOVA Capital commented:
“Mr. Tokayev expressed dissatisfaction with the National Bank of Kazakhstan’s (NBK) efforts to curb inflationary pressures, which are above the target level (8.7% YoY in July vs. the target range of 4-6%). Both NBK and the government should take measures to bring inflation into the targeted range. One mechanism being considered is price monitoring throughout the supply chain, and the body responsible for this should be chosen in a month's time.”
Author: Frederico Teixeira de Abreu, Junior Economist