Inflation in Kazakhstan hits 9.1% in March

Kazakhstan continues to face rising inflation rates. Inflation was 9.1% in March, Kazinform news agency correspondent reports, citing the latest report from the Bureau of National Statistics.

Kazakhstan's annual inflation rate slowed to 9.1% from 9.3% in February 2024 and 18.1% in March 2023. This rate is noted as the lowest since February 2022. 

Prices for paid services increased by 13.2%, non-food items by 8.2%, and food items by 6.9%.

The inflation picture has its own characteristics depending on specific regions. A detailed analysis of the data shows that the inflation rate varies in different parts of the country. In the Pavlodar region, inflation amounted to 2.1%, while in the Turkistan region, it remained at a minimum level of 0.2%. This spread indicates different economic activity and the influence of various factors in the regions.

By analyzing changes in prices for various goods and services, a trend toward rising prices in different sectors of the economy can be identified. Food products show the greatest increase in prices in the Zhetisu region (1.1%), while non-food products have risen in price mainly in the city of Shymkent (1.2%).

According to Eldar Shamsutdinov, an economist from Kazakhstan, factors that play a major role in differences in inflation rates between regions include market structural features and personal factors such as interest costs on loans.

“The costs of loans, both direct and indirect installment plans, are also included in loans. They are just indirect loans. When interest payments are included in the cost of goods, they also affect the feeling of inflation. When you pay high interest on loans, you endure inflation more difficult and you get the feeling that inflation is high,” he said.

Shamsutdinov said it is difficult to assess the measures taken by the government.

“In the short term, price retention had an effect, but as practice shows, inflation turned out to be more stable and the high base effect had a greater impact on reducing the rate of inflation growth,” he said.

The expert also added that by the end of the year, he expects inflation to range from 8.5% to 9% and to be at 7.5% to 8% in 2025.