More than half of all inflation fell on food in Kazakhstan in June.
“Food prices have risen for almost all food products and more than half explain the rise in inflation , (contribution to inflation in June 54%),” said Galymzhan Pirmatov, chairman of the National Bank.
According to him, despite the fact that we produce most of the food domestically, rising prices on the world market are exerting inflationary pressure.
“Thus, the indicator of world food inflation (FAO index) continues to remain close to historical maximum levels. Moreover, for individual positions, we all see excess demand due to the risk of shortages. A striking example is sugar,” said Pirmatov.
According to the National Bank, “annual inflation accelerated to 14.5% in June 2022. Prices are rising for all its components - food products (19.2%), non-food products (13.2%) and paid services (9.2%). This comes as a result of rising cost-push inflation due to disruptions in supply chains, increased external inflationary pressures, as well as strong demand supported by fiscal stimulus, and the depreciation of the tenge.”
Actual inflation significantly exceeded the forecast trajectory against the backdrop of accelerating inflationary expectations.
“Both the stable component of consumer prices and the general price level are growing. The inflation in May and June of this year shows that its peak has not been passed. High inflationary expectations increase pro-inflationary pressures, KazTag reports.
