Kazakhstan aims to reduce inflation to 5-7% by 2029

BAKU, Azerbaijan, June 11. Kazakhstan aims to
reduce inflation to 5-7% by 2029, First Vice Minister of National
Economy Azamat Amrin said during a press briefing.

This is stated by the press service of the Kazakh
government.

Amrin noted that this target is expected to be achieved through
the implementation of a Comprehensive Plan for increasing household
incomes.

He said that among the key targets of the plan are raising
household incomes by 2–3 percentage points above inflation and
creating up to 240,000 quality jobs annually.

Furthermore, Amrin pointed out that labor productivity in EU
countries currently exceeds Kazakhstan’s level by more than three
times, while rural areas still face a high share of unstable
employment. To address these challenges, Kazakhstan plans to
implement 17 cluster projects, launch new agricultural investment
initiatives, develop agricultural cooperatives, support small
businesses, and expand microcredit programs in the regions.

He added that more than 30,000 microloans will be issued in
rural areas, dual education coverage will be expanded, labor
productivity in agriculture will be increased, and the share of
household spending on food will be reduced to 40 percent of total
consumer expenditures.

Kazakhstan has updated its Comprehensive Plan for Increasing
Household Incomes for 2026–2029. The new plan replaces the previous
program implemented since 2022 and includes 59 measures across six
key areas aimed at improving welfare, creating quality jobs, and
increasing real incomes.

According to the National Bank of Kazakhstan, monthly inflation
in the country slowed to 0.7% in May, compared to 0.8% in April.
Both core inflation and seasonally adjusted inflation also
decreased to 0.7%. As of the end of May this year, the annual
inflation stood at 10.4%, decreasing by 2.5 percentage points from
the peak level of 12.9% recorded in September last year.

The National Bank forecasts inflation at 9–11% in 2026. In 2027,
inflation is expected to slow to 5.5–7.5%, while in 2028 it is
projected to stabilize close to the 5% target level.