Increased target transfer to add 0.3 p.p. to inflation in 2025 - National BankKazakhstan’s National Bank expects inflation to rise by 0.3 percentage points in 2025 due to a 1.65 trillion tenge increase in target transfers.The adjustment, part of the Forecast for Socio-Economic Development (FSED), raises the transfer from 1.6 trillion tenge in the first phase (2025-2029) to 3.25 trillion tenge in the second phase, as announced by the National Bank at a conference in Almaty.Adam Zhuzbayev, head of the Monetary Analysis Department at the National Bank, presented the findings during a conference in Almaty. "The upward revision of the price transfer by 1.65 trillion tenge in 2025, as outlined in the second phase of the FSED, will result in a cumulative annual inflation increase of 0.3 percentage points," he said.Central bank research indicates that every 10% expansion of the money supply drives inflation up by 0.8 percentage points within a year. Officials cited Kazakhstan’s 2023 budget deficit, 3.1 trillion tenge or 8.1% of that year’s money supply, as having pushed inflation 0.7 percentage points higher in 2024. (ICE ALMATY)

Fonte notizia: INTERFAX