Kazakhstan’s Inflation Eases to 12.6% in October Amid Utility Price Decline
Kazakhstan’s annual inflation rate eased to 12.6% in October, down from 12.9% in September, marking the first slowdown this year. Monthly inflation dropped to 0.5%, its lowest level since early 2025, according to Halyk Research.
The decline was largely attributed to a 3.5% fall in housing and utility prices, though analysts noted the change was unexpected, as tariffs in this sector are regulated and no official cuts were announced. A moratorium on utility tariff increases took effect on Oct. 16 and will remain in force until the first quarter of 2026. Meanwhile, food and non-food inflation continued to rise.
Food prices surged 13.5% year-on-year, driven by increases in meat (21.1%), cooking oil (18.4%), and non-alcoholic beverages (15.2%). Non-food prices rose 11%, led by fuel (14.9%), footwear (11.2%), and clothing (10.5%).
Analysts attribute ongoing inflationary pressures to the earlier depreciation of the tenge and the stronger ruble, which have increased the cost of imports.
Economists expect inflation to end the year at 12–12.5%, supported by fiscal tightening, the price moratorium, tenge stabilization through foreign currency sales and external borrowings, slower credit growth, and a projected weakening of the ruble later this year.
