Kazakhstan: Inflation increases in October
Latest reading: Inflation ticked up to 8.5% in October, following September’s 8.3%. According to the preliminary release, price pressures accelerated for services and non-food goods. That said, price growth for food eased in October.
That said, annual average inflation fell to 8.9% in October (September: 9.1%).
Finally, consumer prices increased 0.90% over the previous month in October, picking up from the 0.46% rise seen in September. October’s uptick was the highest reading since February.
Panelist insight: Goldman Sachs’ Basak Edizgil and Clemens Grafe commented:
“Looking ahead, inflationary pressures will remain high in November on the back of additional electricity tariff hikes. Given the upside surprise to our forecast, we are also raising our year-end inflation forecast from 7.6%yoy to 7.9%yoy for 2024. Following its decision to keep its policy rate constant in October, the NBK stated that a steady decline in core inflation and “an effective and systemic solution” to the issue of financing the fiscal gap are necessary conditions for further rate cuts. Given lack of progress on both fronts, we continue to expect the Bank to remain on hold for the remainder of the year.”