A record-high harvest in 2011, which was twice as high as in 2010, will result in decreasing food prices by mid-2012.

Kazakhstan’s inflation will slow down in 2012 and total 7%, Interfax reported citing an analytical overview by the Renaissance Capital investment firm. Experts believe that the rise in fuel prices will remain a major factor in inflation. Meanwhile, Kazakhstan’s membership in the Customs Union, the WTO, as well as participation in regional free trade agreements should lead to lower prices for imports, according to the survey. The company’s analysts believe that in this case the impact of monetary factors will remain limited until banks resume lending. Kazakhstan’s 2012-2014 inflation range is set within 6-8%. The National Bank of Kazakhstan has already announced that it saw no reason to revise the existing medium-term inflation range, but did not rule out that it may consider this possibility at the end of 2012.

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