Kazakhstan: Inflation continues to surge in April
May 3, 2016
In April, consumer prices rose 0.6% over the previous month, which followed the 0.5% rise observed in March. April’s mild increase—together with March’s less pronounced increase—mainly reflected the recent stabilization in the exchange rate. Looking at the details, higher prices were reported for food, alcoholic beverages, clothing, and healthcare products.
Inflation increased from 15.7% in March to 16.3% in April, which represented the highest level in seven and a half years. Inflation remains well above the National Bank of Kazakhstan inflation target established in September 2015. Under the new inflation targeting regime, the Central bank established an inflation target corridor of between 6.0% and 8.0% for the medium term. As a result of the sharp increase in April, the trend continues to signal that inflation is returning to levels last seen at the height of the global financial crisis. Annual average inflation jumped from 8.8% in March to 9.8% in April, which marks the highest level since August 2009.
Author: Ricardo Aceves, Senior Economist