BAKU, Azerbaijan, April 25. Kazakhstan's inflation is expected to remain high in 2023 due to elevated food prices and prices of imported intermediate goods, Trend reports citing World Bank's Kazakhstan Economic Update report.
According to the report, the inflation rate is projected to remain beyond the target range of 4-6 percent in 2023 and return to it in 2024.
"Inflation has surged to its highest level since the late 1990s due in part to wage increases across sectors and crisis-related fiscal measures. Prices rose broadly but food prices have been a major contributor to the surge," said the report.
The World Bank also noted that the persistently high inflation rate in Kazakhstan is a serious challenge, particularly for the most vulnerable households, and could potentially amplify the risk of social tensions.
As a solution, the World Bank analysts suggest continued monetary tightening and tighter control of fiscal spending, coupled with more effective targeting of social programs.