10 Jan 2018 15:07

Sberbank CIB forecasts 6% inflation in Kazakhstan in 2018

ALMATY. Jan 10 (Interfax) - Inflation in Kazakhstan in 2018 will be at about 6%, Sberbank Investment Research, the analytical arm of Sberbank CIB, said in a report.

"We expect that in 2018, monthly inflation will be at 0.5% on average; that is, by the end of December, the annual figure will be at about 6%," the analysts said.

"The slowdown in consumer inflation coincides with the forecast of the National Bank of Kazakhstan. According to the forecast of the regulator, inflation will be at 5-7% at the end of 2018. The base rate in real terms [that is, the nominal rate adjusted for inflation] should be less than 4%. Given this, we expect that in 2018, the rate will be lowered by at least 0.25 percentage points," the analysts said.

It was reported earlier that inflation in Kazakhstan rose to 7.1% in 2017.

On November 27, 2017, the National Bank of Kazakhstan decided to hold the base rate at 10.25%, effective August 21 of last year. The National Bank will announce its next decision on the base rate on January 15.