Kazakhstan Government Renews Its Fight Against Inflation

Prime Minister Olzhas Bektenov chaired a meeting of the Economic Policy Council this week, where members of the Cabinet discussed strategies to rein in inflation and outlined the country’s economic direction for the coming years, Orda.kz reports.

According to the National Bank, annual inflation in June 2025 stood at 11.8%. The rise is attributed to global market instability, changes in tariffs, increased consumer demand, and expectations of further price hikes.

A new package of anti-inflation measures is now in its final stage of review. The plan, which includes both short-term and long-term steps, will soon be formally adopted by government resolution.

The key areas include increasing domestic production, improving the predictability of tariff policy, stabilizing prices for essential goods, and lowering inflation expectations. Efforts also continue to support local manufacturing, saturate the domestic market, and control retail markups, the government said in a statement.

According to the Ministry of Economy, authorities have issued 1,847 penalties since the beginning of 2025 for exceeding the allowable 15% retail markup. Fines are now being issued instead of warnings.

Officials are also working to prevent unjustified hikes in utility rates. The current inflation control program has been updated and extended through 2026.

The Ministry of Trade reports that Kazakhstan continues to offer competitive prices on socially significant products. For instance, local beef is 30% cheaper than in EAEU and Central Asian countries. Potatoes and carrots are 38% cheaper, onions 47%, and cabbage 50%.

Memorandums have been signed with industry unions, resulting in an 8.7% drop in egg prices. To stabilize off-season prices, contracts have been signed for the supply of 30,300 tons of early vegetables, with deliveries coming from China, Pakistan, and Uzbekistan. Export restrictions have also been introduced on products such as potatoes, breeding stock, and bulls.

Still, prices for some essential items have continued to climb, including sunflower oil, beef, lamb, and potatoes.

Targeted measures are being taken for sunflower oil. In 2024, production increased by 15%, doubling domestic demand. In the first half of 2025 alone, 388,000 tons were produced—21.3% more than the same period last year. From January to March, Kazakhstan exported 294,000 tons of oil, a 41% increase year-over-year. Currently, five large processing plants with a combined capacity of 421,000 tons are under construction. 

Prime Minister Bektenov stressed that the fight against inflation must be systemic and results-oriented.

He emphasized the need for coordinated action between the government and the National Bank to ensure lasting economic stability.

Original Author: Zhadra Zhulmukhametova