BAKU, Azerbaijan, November 23. The European Bank for Reconstruction and Development forecasts inflation rate in Kazakhstan to be around 14 percent by the end of 2022, Trend reports via the latest Transition Report from the EBRD.
According to the report, an average inflation rate in Kazakhstan in 2021 stood at 8 percent.
The report indicates that October CPI figures are 18.8 percent, compared to 8.4 percent in December 2021.
From the perspective of EBRD., the conflict in Ukraine led to a sharp depreciation in the Kazakh tenge rate, strong growth of nominal wages (25.6 percent year-on-year in September), while a surge in transport, commodity, and food prices have contributed to the increasing inflation.
At the same time, the EBRD noted that the National Bank of Kazakhstan took measures to combat inflation, such as the gradual increase of policy rate from 9.75 percent in December 2021 to 16 percent in October 2022, and offering a premium on the interest rate on local currency denominated deposits held in banks for at least one year.