Prime Minister Olzhas Bektenov chaired a meeting of the Economic Policy Council, which focused on measures to contain inflation and on the parameters of the country's socio-economic development forecast for the coming years.

According to the National Bank, annual inflation as of June this year stood at 11.8%, driven by a combination of external and internal factors such as global market instability, tariff reforms, increased consumer demand, and inflationary expectations.

To curb rising prices, the Government, together with the National Bank and local executive bodies, is carrying out systematic work. The updated Comprehensive Measures for Inflation Control and Reduction—developed with the active participation of the National Bank—are currently in the final stages of review and will be adopted by a separate Government decree. Key focus areas include boosting domestic production, enhancing tariff policy predictability, stabilizing prices for basic goods, and reducing inflationary expectations. Additional efforts are underway to support local production, saturate the domestic market, and monitor trade markups.

According to the Ministry of National Economy, 1,847 administrative rulings have been issued since the beginning of 2025 for exceeding the 15% limit on trade markups. Penalties have been tightened—warnings have been replaced with fines. Work is also ongoing to prevent unreasonable increases in tariffs for regulated utility services. The total contribution of this sector to inflation since the beginning of the year has been 0.5 percentage points.

It was noted that the implementation of the Measures in 2023 helped reduce inflationary pressure by 4.16 percentage points, and by 2.3 percentage points in 2024. The updated Measures are now extended through 2026.

The Ministry of Trade and Integration reported that Kazakhstan maintains competitive prices for socially significant food products: beef prices are 30% lower than in EAEU and Central Asian countries; potatoes and carrots are 38% lower; onions are 47% lower; and cabbage is 50% lower. Since the beginning of the year, over 3,000 agricultural fairs have been held offering goods below market prices. Memorandums signed with industry associations have contributed to an 8.7% reduction in egg prices. To stabilize prices during the off-season, contracts have been signed for the supply of 30,300 tonnes of early vegetables, with deliveries organized from China, Pakistan, and Uzbekistan. Export restrictions have been introduced for products including potatoes, breeding stock, and young bulls.

Minister of Agriculture Aidarbek Saparov reported that agricultural output in January–May 2025 increased by 4% to 1.3 trillion tenge. Food production rose by 10.5%. A Comprehensive Plan for Agricultural Processing Development through 2028 has been launched, with 677 investment projects underway, including 289 focused on import-dependent goods. Price increases were recorded for several socially significant products such as sunflower oil, beef, lamb, and potatoes. In response, targeted measures are being taken for sunflower oil: production increased by 15% in 2024—double the domestic need. In the first six months of this year, 388,000 tonnes of oil were produced, up 21.3% from the same period last year. From January to March, 294,000 tonnes of oil were exported—a 41% increase year-on-year. Five large processing plants with a combined capacity of 421,000 tonnes are currently under construction in the country.

Prime Minister Olzhas Bektenov emphasized that anti-inflationary policy must be systematic and effective. He highlighted the importance of coordinated efforts between the Government and the National Bank in implementing these measures.

“The task of reducing inflation is critically important and requires a comprehensive approach. The Government, together with the National Bank, will continue implementing adopted measures and will consistently work toward achieving target benchmarks,” Olzhas Bektenov stated.

 

#The Prime Minister of the Republic of Kazakhstan #Economic Policy Council #Economy

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