The results of work to contain prices for socially important food products in 2023 were summarized in the Government at a meeting chaired by Deputy Prime Minister Serik Zhumangarin.

In terms of the total annual inflation rate of 9.8% for the first time the food indicator was lower than non-food. The main driver of the decline in food inflation was the prices of socially important food products.

As First Deputy Minister of Trade and Integration Aizhan Bizhanova noted at the meeting, in order to keep the inflation rate in 2024 in the corridor of 6-8% in the department calculated indicative retail values in the context of socially important goods for each region, taking into account their specifics, the current situation and five-year trends.

"The draft indicative prices for socialy important food products in the context of regions and goods are calculated on the basis of the target inflation rate in the range of 6-8% for 2024. The recommended indicators take into account current market conditions, seasonality factor and forecast trends. Also, the work of regional commissions to investigate intermediary schemes will continue," Aizhan Bizhanova said.

The situation on stabilization of prices for flour and bread, stocks of vegetables in the stab funds was voiced by Vice-Minister of Agriculture Yerbol Taszhurekov.

"At present, according to the data of Akimats, agricultural companies have stocks of flour in the amount of 25.7 thousand tons, including in stabfonds - 14.1 thousand tons, within the framework of the revolving scheme - 11.5 thousand tons. Work is underway to provide regions with preferential wheat within the framework of memorandums of akimats and Prodkorporatsiya. The approved volume of wheat for September-December 2023 is 64.5 thousand tons, 60.8 thousand tons of wheat has already been shipped," he said.

According to him, the stocks of vegetables for the winter-spring period of 2024 in the amount of 174.1 thousand tons (100.6 thousand tons of potatoes, 25.6 thousand tons of onions, 22.6 thousand tons of cabbage, 25.1 thousand tons of carrots) have been formed. It is noted that this is enough to have a regulatory impact on the market in the period from February to April.

Deputy Minister reminded akimats of the need to enter into forward contracts for the supply of early harvest as soon as possible to prevent the rise in prices for vegetables from May to July.

"For this year's off-season, financing should have started from August 1 last year. However, the regions have not yet submitted forward contracts for the supply of early vegetables," Taszhurekov emphasized.

Summarizing the results of the meeting Serik Zhumangarin noted that inflation expectations of Kazakhstan citizens last year were high, the same trends influenced inflation in 2022-2023. Largely due to the coordinated work of the regions last year managed to contain the growth of prices for SIFP. Even by the New Year, Kazakhstanis did not see a strong rise in prices, and for the population the main goods-markers of inflation have always been food products.

"This year there is a task to enter the inflation corridor of 6-8%. It is necessary to draw up a specific plan to disperse vegetable stocks and start this work not at the end of February, but much earlier. It is necessary to increase the efficiency of interregional transportation logistics so that fruit and vegetable products could be delivered from one region to another in a matter of days. It is also necessary to strengthen the work of regional commissions to identify unproductive intermediaries," Zhumangarin summarized.

#Serik Zhumangarin #Socially Important Food Products