Kazakhstan: Inflation continues on downward trend in February

Consumer prices rose 0.7% over the previous month in February, marginally up from a 0.6% month-on-month increase in January. The increase in prices was broad-based, with higher prices for foodstuffs, non-food products, and paid services. While prices for foodstuff and non-food products picked up slightly from the previous, the upturn in the prices for paid services was smaller in February compared to January.

Inflation continued on a downward trend, moderating to 6.5% in February from 6.8% in January. February’s reading marked the lowest result since September 2015. Annual average inflation inched down to an over two-year low from 7.3% in January to 7.2% in February.

Kazakhstan Inflation Forecast

In 2018, the Central Bank expects inflation to stay within its 5.0%–7.0% target band. FocusEconomics Consensus Forecast panelists expect inflation to end 2018 at 6.3%, which is up 0.1 percentage points from last month’s forecast. The panel expects inflation to fall to 5.6% by the end of 2019.