fastest-growing regions in Kazakhstan
In the heart of Kazakhstan, annual inflation took a steep jump in April, rising to a formidable 10.7% compared to 10.0% in March. This diversified across 18regions with an upsurge, 1 region with a slowdown, and another region standing pat. The capital city, Nur-Sultan, registered the highest inflation rate of 13.8%, according to Liter.kz, citing the National Bank of Kazakhstan.
April saw a 8.5% year-on-year increase in food prices (up from 7.6% in March). The Akmola region witnessed the most significant growth in this category at 11.2%, while Kyzylorda region and Almaty recorded the least at 6.8%.
The rate of non-food prices growth eased a smidgeon in April, standing at 8.9% year-on-year (down from 9.1% in March). The Turkestan region boasted the highest rate at 14.8%, while the Pavlodar region recorded the least at 5.9%.
Prices for paid services surged to 15.7% year-on-year in April (up from 14.3% in March). Almaty witnessed a significant hike in excess of the national average (a staggering 20.0%), while the Pavlodar region experienced a significant drop (8.6%).
Dig Deeper:
- Rising food prices in Kazakhstan
- Economic experts' forecasts for Kazakhstan
- Revealed: Regions with the quickest price growth in Kazakhstan by the National Bank
Factors Affecting Inflation in Kazakhstan:
- Intense Pressures on Raw Material and Labor Costs: Businesses are grappling with escalating raw material and labor costs, which could potentially lead to higher prices. Fortunately, these strains are projected to result in milder price rises in the second quarter of 2025[1].
- Recovering Consumer Confidence and Inflation Expectations: Consumer confidence briefly brightened in March 2025, with the consumer confidence index rising. However, inflation expectations have fluctuated, with whispers of price increases for select services and non-food products[3].
- Hovering Monetary Policy: The National Bank of Kazakhstan has kept interest rates unyielding at 16.5% since March 2025. This policy can have a bearing on inflation by affecting borrowing costs and the demand for goods and services[4].
- Regional Variations: Despite specific data for Nur-Sultan and Almaty being scant, common trends in Kazakhstan suggest that inflation is influenced by the country's overall economic conditions. Cities like Nur-Sultan and Almaty may experience unique inflation dynamics due to local economic conditions, such as higher housing and service demands[5].
- Elevated Food Prices: Numerous citizens have observed a surge in food prices, especially for fresh produce, meat, and eggs. This trend could be a significant contributor to overall inflation perceptions[1].
In essence, while the details on the rapid inflation in Nur-Sultan and Almaty are scarce, the broader economic climate in Kazakhstan, encompassing raw material costs, consumer expectations, and monetary policy, significantly shape the inflation landscape.
- The rapid inflation in Nur-Sultan and Almaty might be influenced by rising food prices, especially for fresh produce, meat, and eggs, which are elevating overall inflation perceptions in Kazakhstan.
- Economic experts may forecast a continuing trend of inflation in Kazakhstan, considering factors such as intense pressures on raw material and labor costs, recovering consumer confidence and inflation expectations, and the hovering monetary policy implemented by the National Bank of Kazakhstan.
