The New Year price hike is driven by high demand, but no significant increases are anticipated.
The Deputy Prime Minister of Kazakhstan, Serik Jumangarin, addressed concerns regarding a potential increase in food prices ahead of the holidays during a press conference. This information was reported by Bizmedia.kz.
According to him, significant price increases are not expected, despite seasonal fluctuations and changes in the exchange rate of the tenge to the dollar.
Zhummangarin explained that prices may temporarily rise during the pre-New Year period due to increased demand. This is an annual occurrence, as people actively purchase food for festive events in a short period. As a result, demand increases, and supply cannot keep up, leading to temporary price hikes.
Regarding the tenge to dollar exchange rate, Zhummangarin noted that it does not have a significant impact on the prices of most products, especially those produced domestically. Kazakhstani products, such as chicken, bread, or locally produced wines, are virtually unaffected by currency fluctuations. However, premium imported goods, such as foie gras or French wines, which are purchased in foreign currency, may see price increases.
The Deputy Prime Minister also highlighted the phenomenon of behavioral inflation, which he associates with unjustified price hikes. He noted that in 2022-2023, the government actively fought against this phenomenon. Market analysis showed that in the service sector, such as hairdressers, there was no noticeable price increase, which is a significant achievement.
Summarizing the first 11 months of 2024, Zhummangarin emphasized that the contribution of food inflation to the overall inflation rate was 4.4%, which is significantly lower compared to the service sector (almost 12%). According to him, this indicates that the rise in food prices has been stabilized.