Kazakhstan: National Bank Monitors Effect of Petrol Price Rise on Inflation

Rising petrol and diesel prices matter for inflation, not only for drivers, because fuel is included in transport costs and can affect other goods and services, Deputy Chairman of the National Bank of Kazakhstan Akylzhan Baimagambetov said. His remarks followed a price increase at the country's largest fuel station network, as reported by Tengri Auto.

Baimagambetov said annual fuel price growth was about 10.4-10.5% in September and fell to about 8.4-8.5% in October, partly due to the exclusion of last October's figure, when fuel also rose significantly. He called fuel a 'marker good' whose changes drivers notice immediately, and said the bank monitors its indirect effects on other prices.

He added that the bank does not respond to petrol prices directly through the base rate. Fuel price growth is treated as a pro-inflationary risk in next year's forecast, and the bank expects inflation to remain within the set corridor.