In May, annual inflation continued to accelerate, reaching 11.3% (YoY). At the same time, monthly inflation decelerated significantly to 0.9% (YoY).
AERC’s forecasts that monthly inflation is expected to remain around 0.9% (MoM) during the June–August period. However, due to the base effect from the previous year, the annual inflation rate is projected to continue increasing and will reach 12.46 (YoY) by August.
In May, the inflationary expectations of the population one year from now increased, while long-term expectations (five years) decreased to 13.7%.
The decrease in tenge volatility in May was accompanied by decline of trade volumes and growth of the share of transactions by the National Bank and quasi-government companies.
Kazakhstan's reserve assets reached $52.4 billion. Monthly growth of 4.6% was driven by an increase in the value of foreign currency and gold holdings.
Read more in the Monetary Snapshot.
