Tag Archives: inflation

Kazakhstan cuts interest rate

NOV. 14 2016 (The Conway Bulletin) — Kazakhstan cut its key interest rate by 50 basis points to 12%, its fourth cut since May, as it looked to give industry a boost. The Central Bank said more cuts were likely but that these came with a potential inflation risk. The Central Bank had raised rates to a high of 17% in February to counter inflation.

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(News report from Issue No. 305, published on Nov. 18 2016)

 

Deflation continues in Armenia

NOV. 9 2016 (The Conway Bulletin) — In the first ten months of 2016, consumer prices in Armenia decreased by 3.1%, the country’s Statistics Committee said. Importantly, food prices decreased by 6%. Deflation in the country has continued throughout the year, although October registered inflation of 0.5% compared to September. Low economic activity has depressed prices in Armenia and could hinder growth.

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(News report from Issue No. 304, published on Nov. 11 2016)

Inflation rises in Kazakhstan

NOV. 2 2016 (The Conway Bulletin) — Kazakhstan’s Statistics Committee said inflation had risen by 0.6% in October, pushing up prices that had stabilised in previous months. Since the beginning of the year, prices have risen an average of 6.2%. The Central Bank has said that it wants to contain inflation between 6% and 8%. Last year, inflation in Kazakhstan reached double digits.

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(News report from Issue No. 303, published on Nov. 4 2016)

Uzbeks complain about price rises but steer clear of protests

TASHKENT, NOV. 4 2016 (The Conway Bulletin) — Anatoliy, 60, earns a living by ferrying children to school each day across Uzbekistan’s Soviet- built capital and then hawking for fares in his battered Daewoo Matiz, along the city’s wide boulevards.

“I used to spend 80,000 sum (around $25.7) per week to buy fuel for my car and now I spend 120,000 sum ($38.6),” he said with a resigned air.

On the issue of protesting against the price rises, he shrugged and said that people in Uzbekistan were different from people in Kazakhstan and Kyrgyzstan. “People here are ready to say ‘hop mailly’ [“let it be” in Uzbek] to whatever decision is taken by officials,” he said.

Uzbekistan is considered by most human rights organisations to be one of the most repressive countries in the world and anti-government demonstrations are virtually unheard of.

Officials have said that the price rises were needed to balance the price of petrol sold in the regions and in Tashkent. Many people, though, are skeptical and have said that the government is exporting too much petrol for its own profit.

Shokhrukh, 40, another Tashkent-based gypsy cab driver sucked in a deep breath when he was asked about the petrol price rises.

“Our oil reserves in the Bukhara deposit are now insufficient to cover domestic petrol demands and the government has to import petrol from Russia which they have to pay for in roubles and US dollars,” he said.

Like other Central Asian currencies, the Uzbek sum has lost value over the past couple of years, pushing up inflation.

But is it not only drivers who will be impacted by the rise in the cost of petrol. Shukhrat, 40, an ethnic Uyghur in Tashkent, who sells cloth at Tashkent local bazaar said that all prices will have to increase off the back of such a big jump in the price of petrol.

“Food requires transportation and consequently fuel, I expect some shop owners will rise their food prices,” he said.

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(News report from Issue No. 303, published on Nov. 4 2016)

Economy worsens in Turkmenistan

OCT. 20 2016 (The Conway Bulletin) — The Eurasianet website reported that prices of basic foodstuffs are spiraling in Turkmenistan as the economy buckles under inflationary pressure linked to a sharp economic downturn. It also said that the government has had to cancel a series of construction projects to save money. It didn’t give any details of the particular contracts which had been cancelled. The Turkmen government has not commented.

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(News report from Issue No. 301, published on Oct. 21 2016)

Inflation picks up in Armenia

OCT. 10 2016 (The Conway Bulletin) – After seven months of deflation, some prices in Armenia have started to rise, the Statistics Committee said. Food prices decreased marginally, but non-food items and the service sectors registered inflation of around 1%.

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(News report from Issue No. 300, published on Oct. 14 2016)

Inflation to top 10% in Azerbaijan

SEPT. 15 2016 (The Conway Bulletin) – Annualised inflation in Azerbaijan remained above 10% in August as the country continued to cope with the price increases linked to the Central Bank’s decision to abandon the currency peg to the US dollar in December, the Statistics Committee said. In Jan.-Aug. 2016 inflation amounted to 10.8%, in annualised terms it was 10.6%.

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(News report from Issue No. 296, published on Sept. 16 2016)

 

Inflation raises in Tajikistan

SEPT. 14 2016 (The Conway Bulletin) – Tajikistan’s Central Bank said that annualised inflation amounted to 6.4% in August, an increase from last year’s level of 5.1%. Inflation is volatile in Tajikistan, as it is closely tied to the Central Bank’s currency interventions. Despite repeated Central Bank’s interventions, the Tajik somoni has lost 19% against the US dollar in the past 12 months.

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(News report from Issue No. 296, published on Sept. 16 2016)

 

Armenia’s CBank cuts interest rates

AUG. 16 2016 (The Conway Bulletin) — Armenia’s Central Bank cut its key interest rate to 7.25% from 7.5% to help counter falling consumer prices, the lowest rate since 2014. Annualised deflation in Armenia measured 1.3% at the end of July, the Central Bank said, a trend that would continue.

ENDS

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(News report from Issue No. 293, published on Aug. 29 2016)

Kazakh C. Bank cuts interest rates

JULY 11 2016 (The Conway Bulletin) — Kazakhstan’s Central Bank lowered its key interest rate by two percentage points to 13%, official media reported. The Central Bank cited higher oil prices, slowing inflation and the volatility in global markets after Britain’s referendum to leave the EU as the main factors leading to the rate cut. This is the second rate cut in just over two months.

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(News report from Issue No. 289, published on July 15 2016)