Kazakhstan: Inflation continues upward trend in July
August 1, 2016
In July, consumer prices rose 0.5% over the previous month, which was up from the 0.4% increase observed in June. July’s reading mainly reflected higher prices for housing, water and electricity, as well as for transportation and communications.
Inflation increased from 17.3% in June to 17.7% in July. Although the reading represented the highest level in nearly eight years, the rapid increase in inflation is showing signs of losing momentum. In the last 10 months, inflation has remained well above the National Bank of Kazakhstan’s inflation target established in September 2015. Under the inflation targeting regime, the Central Bank established an inflation target corridor of between 6.0% and 8.0% for the medium term.
Due to the increase in July, 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 12.0% in June to 13.1% in July, which is the highest level since April 2009.
Author: Ricardo Aceves, Senior Economist