Since the start of the year, prices for socially significant food products in Kazakhstan have risen by only 1.4%, compared to 7.9% a year earlier. This means the growth rate has slowed nearly fivefold, according to infohub.kz.
According to the Ministry of Trade and Integration, food inflation fell to 10.1% in July, down from 13.5% in December last year. The ministry attributes this trend to the seasonal arrival of vegetables, which helps keep the overall index in check and offset price increases for certain goods.
Since the beginning of August, prices for socially significant food products have even dropped by 0.2%. This was made possible by a set of measures implemented at the instruction of Deputy Prime Minister Serik Zhumangarin. In particular, market analysis, supply chain reviews, and rental conditions are being conducted, and unnecessary intermediaries are being removed from the chains.
To reduce transportation costs, a preferential tariff for railway transportation of food products is in effect. Additionally, electricity tariffs for producers of socially significant products have been reduced by 20%.
At the same time, the mechanism of stabilization funds is being revised. The approach will shift from simply purchasing products and spending funds to evaluating concrete results – the impact on prices.