Kazakhstan's annual inflation eased to 10.3% in June, its ninth consecutive monthly slowdown, Qazinform News Agency quotes National Bank Governor Timur Suleimenov as saying at a Government's meeting. He said the slowdown had been driven by moderately tight monetary conditions, tighter money supply management through higher minimum reserve requirements and the mirroring of gold purchase operations, as well as the Government's anti-inflation measures and macroprudential policies aimed at regulating consumer lending.
However, he cautioned that it was still too early to say prices had fully stabilized, noting that monthly inflation stood at 0.8% in June. "Further inflation reduction will require a balanced and gradual implementation of utility tariff and fuel price adjustments, effective fiscal consolidation to prevent an increase in the republican budget deficit and transfers from the National Fund, as well as efficient quasi-fiscal stimulus supported by a real expansion in the supply of domestically produced goods," Suleimenov said.
He also cited persistent geopolitical tensions and rising global food prices among the key external risks. Qazinform News Agency reported that Kazakhstan had introduced new biometric authentication rules.