On the instructions of the Head of the Government Olzhas Bektenov regarding the containment of price growth, Deputy Prime Minister Serik Zhumangarin held an extended meeting with representatives of government agencies and akimats involved in the implementation of a set of measures to control and reduce inflation. 

According to information of Deputy Minister of National Economy Azamat Amrin, implementation of 90 measures of operative and medium-term character is envisaged. They are aimed at increasing production volumes, developing mechanisms for storage and transport of goods, as well as control over pricing, antimonopoly and foreign trade regulation.

"In 2023, the implementation of 30 measures was planned. Of these, 25 have been fulfilled, and work continues on five. For 2024, 60 are planned, as of 1 March, five of them have been executed. In addition, the measure on compliance with the aggregate contribution to inflation from tariffs for regulated services of natural monopolies is being implemented on an ongoing basis. In 2023, this indicator amounted to 1.08 percentage points against the established threshold of 1.76. In general, the implementation of a set of measures allowed to reduce the pressure on consumer prices and slow down inflation," the Deputy Minister informed. 

In 2023-2029, the Committee for Regulation of Natural Monopolies is implementing a programme "Tariff in exchange for investment", according to which large-scale investments are expected to be attracted for the modernisation of engineering networks of electricity, heat, water and wastewater supply. It also assumes a certain annual increase in tariffs. The projected cumulative contribution to inflation at the end of 2024 will be at the level of 1.57%. 

According to the National Bank, pressure on prices is exerted by strong domestic demand, supported by fiscal stimulus and high rates of consumer lending. Exaggerated and unstable inflation expectations of the population play a role. 

"The task is to enter the inflation corridor of 6-8% in 2024 and every fraction of a per cent increase in its components plays an important role due to the multiplier effect. Inflation is declining, but it is multifactorial. The package of anti-inflationary measures is highly project specific. It should be a flexible document to manage all planned activities in a balanced and operational manner. It is necessary to smooth out spikes and ensure uniformity of inflation growth within a given corridor. The complex adopted in 2022 has played its role, but now it should be updated through the prism of a coordinated policy with an increase in its components. All government agencies together with the National Bank should prepare their proposals for consideration by the Government within two weeks," Serik Zhumangarin said.

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