How Kazakhstan plans to stabilize prices for goods and services

Vice Minister of National Economy Abzal Abdikarimov took part in a meeting of the Republican Public Council on Economy, Entrepreneurship and the Agrarian Sector under the AMANAT Party on the topic "On measures to stabilize prices for goods and services", El.kz reports with reference to the press service of the Ministry of National Economy of the Republic of Kazakhstan.

The world food price index, according to the UN FAO, in July amounted to 13.1% in annual terms. Record levels of inflation are observed in many countries.

"The deterioration of the external inflationary background affects the dynamics of inflation in Kazakhstan. In July 2022, annual inflation accelerated to 15%. At the same time, the largest contribution was made by the increase in prices for food products, which amounted to 19.7%. This is the highest figure since 2007," the Vice Minister of National Economy said.

The drivers of food inflation were the rise in prices for sugar, onions, wheat flour, buckwheat, pasta, bakery products, dairy products, confectionery, meat and meat products. Against the background of seasonal factors in July, there was a decrease in prices for fruits and vegetables by 4.3%.

Currently, the Package of Measures to Control and Reduce inflation for 2022-2024 is being implemented, aimed at increasing the share of domestic goods in the domestic market, developing mechanisms for storing and transporting goods, reducing the deficit, reducing the intermediary link, supporting retail trade, pricing control, antimonopoly and foreign trade regulation.

As part of these measures, the list of imported goods for which VAT is paid by the set-off method has been updated. The Food Security Plan for 2022-2024 was adopted. In January of this year, price regulation for liquefied petroleum gas was introduced for 180 days, in July it was decided to extend it until January 2023.

In addition, draft Rules for the regulation and formation of marginal prices for medicines have been developed.

On an ongoing basis, work is carried out to provide stabilization funds with food products, weekly agricultural fairs are held, at which goods are sold at prices below market prices. The financing of the circulating scheme has been increased to 100 billion tenge. Local executive bodies conclude agreements with NWTP producers and commercial facilities on price stabilization.

"To stabilize prices for "social bread", since February of this year, JSC "NC " Food Contract Corporation " has been selling cheaper wheat for flour milling enterprises. Projects are being implemented to reduce import dependence on food products, building materials, goods of light, chemical and pharmaceutical industries," Abdikarimov concluded.

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