Kazakhstan: Inflation increases in May
Consumer prices rose 0.71% from the previous month in May, coming in below April’s 0.85% rise. The softer rise was primarily due to a softer increase in prices for foodstuffs. In addition, price pressures for non-food goods eased.
Inflation came in at 7.2% in May, which was up from April’s 7.0%. Annual average inflation edged up to 7.2% in May (April: 7.1%).
On the outlook for inflation and the implications for monetary policy, Artem Zaigrin, chief economist at SOVA Capital, commented:
“Going forward, we expect inflation to moderate closer to the upper bound of NBK’s targeted range (4–6% YoY). We think NBK is unlikely to start normalizing its policy stance in 2021, as elevated food-price pressures and Covid-19, not to mention the geopolitical risks coming from Russia, could reverse the recovery course, bringing oil prices down and leading to supply disruptions.”