Inflation Rate to Slow Down By 2023, Says Kazakh National Bank Chairman

ASTANA – The inflation rate in Kazakhstan is expected to slow down in 2023, said Chairman of Kazakhstan’s National Bank Galymzhan Pirmatov at a session of the Senate on Nov. 10, reported the Senate’s press service.

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“According to our forecasts, inflation will continue to rise, reflecting the sustained pass-through of external inflation into domestic prices, particularly the migration shock, which triggered a substantial increase in inflation expectations. Taking current monetary policy into consideration, a reduction in inflationary processes is expected in 2023, amid a forecast decline in external inflationary pressure,” reported Pirmatov.

According to Pirmatov, the problem of excessively high prices extends beyond the food and energy sectors. This is why the International Monetary Fund (IMF) raised its global inflation prognosis in October, noting the risk of its continued persistence.

According to the IMF, global inflation will reach 8.8 percent by the end of the year. It is forecasted to diminish to 6.6 percent in 2023 and 4.1 percent in 2024.

Kazakhstan’s inflation in October reached 18.8 percent.

“To fight inflation, central banks are pursuing an increasingly synchronized cycle of rate increases because price stability is a critical prerequisite for sustainable economic growth,” said Pirmatov.

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