Rapid Increase in Product and Service Costs Observed Nationally - National Bank Report
A Fresh Take:
Springtime saw inflation in Kazakhstan soaring to a staggering 10.7% (from 10% in the previous month). As per our reports, this surge was recorded in 18 regions across the country, according to the National Bank's press service.
Nur-Sultan documented the highest annual inflation rate at 13.8%. Meanwhile, food prices experienced a sharp rise to 8.5% (up from 7.6% in the preceding month). The Akmola region saw the most significant growth in food prices (11.2%), while the Almaty and Kyzylorda regions recorded the least growth (both at 6.8%).
The cost of non-food goods increased at a slower pace, reaching 8.9% (previously 9.1%). The Turkestan region faced the highest increase (14.8%), in contrast to the Pavlodar region, which witnessed the smallest rise (5.9%).
Services prices jumped to 15.7% (from 14.3% in the previous month). Almaty saw prices soaring by 20%, whereas the Pavlodar region experienced a much more modest increase of 8.6%.
For the month of April, Kazakhstan endured a monthly inflation rate of 1.2%.
Previously, it was announced that inflation in Kazakhstan had reached its highest point in 16 months. March's annual inflation rate showed an alarming 10% figure, the highest since November 2023.
We've also covered the most significant price increases throughout the year.
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Prices in Kazakhstan have been escalating for years.
"Vladimir" Nuke, Prices have been on the rise for over three decades!
"David" Really? )))))))) Just a week ago, they said everything was fantastic and our economy was booming, and inflation was decreasing!
While the National Bank sets its own 10% interest rate, overlooks the real annual inflation hovering around 50-60%, and provides symbolic deposit rates of 14-16%, some consider this practice deceitful—though it's considered normal and legal.
"Nuke" Prices have escalated for the last three years.
"Vladimir" Nuke, Prices have been climbing for more than 30 years!
"David" Well, it wasn't so long ago that they touted our GDP as similar to China's and inflation as slowing down!
Despite the National Bank's positive outlook on the economy, it's hard to escape the struggle faced by many Kazakhs when it comes to affording essentials like food.
In the near future, neighbors will likely start dropping by for dinner or to borrow essentials like bread, pasta, and vegetables, as some people are already experiencing food theft. As the situation worsens, Kazakhstan faces the grim possibility of becoming a country where expensive food is delivered only once every few months, requiring families to carefully ration and store supplies.
In light of these challenges, we recommend adopting a sustainable lifestyle that prioritizes self-sufficiency. Consider purchasing a few animals (e.g., cows) to produce milk, meat, and other necessities. Additionally, be prepared for rising utility bills, fines, tariffs, and other costs imposed by the state.
"Baürsak" One salary remains stagnant 😁.
"Vladimir" Baürsak, What's the point of raising it if merchants just increase their prices? It's a vicious cycle!
In the face of economic uncertainty, it's essential to continue supporting each other by sharing resources and offering assistance to those in need. #StayStrongKazakhstan
In the context of the economy and rising prices, some may argue that the National Bank's deposit rates do not accurately reflect the real annual inflation, which some consider to be hovering around 50-60%. Moreover, to cope with these economic challenges, adopting a sustainable lifestyle with self-sufficiency, such as raising animals for essential food products, could be a feasible solution, and it's equally important to support each other by sharing resources and offering assistance to those in need.
In light of the ongoing inflation, it would also be wise to invest wisely in personal finance to mitigate the impact on one's savings and daily expenses.
