Farming goods rapidly decreasing in price for producers, yet store retail costs escalating, according to expert opinion.
Rewritten Article:
Boom in Prices at Retail Stores, Despite Reduced Production Costs
Prices of goods on store shelves are heavily influenced by several variables, so a reduction in production costs for a specific product doesn't always translate to lower prices for consumers.
According to recent figures, total inflation in Kazakhstan reached an astounding 10.7% in April 2025, with food prices climbing by 8.5% over the year. This grim trend was highlighted by analysts from the Telegram channel Tengenomika, who pointed out that prices for agricultural products directly from producers have remained relatively static and even decreased. They attribute this disconnection between both prices to systemic issues within the supply chain, including hurdles in importing goods, logistics, and trading margins.
Inflation still climbs steadily, as indicated by the 10.7% uptick in April (a rise from 10% in March), and an average monthly increase of 1.2%. Expenses for paid services (up 15.7% yearly and 1.6% monthly) and food items (up 8.5% annually and 1.1% monthly) have seen the most significant increases.
Despite the stagnant or decreasing prices of agricultural products from local producers, as reported by Tengenomika analysts, store shelves paint a different picture.
So, why do prices for consumers remain elevated?
"As per data from the National Bureau of Statistics, by April 2025, prices for agricultural products directly from Kazakhstan producers have increased by only 0.2% monthly - nearly imperceptible. In yearly terms, prices have actually dipped by 3.9%, although the rate of decline has slowed down (from 4.4% in March)", the analysts explain.
This contrasts sharply with the 10.7% yearly inflation rate observed across retail items. A few agricultural products, such as potatoes (up 30.9% yearly), cucumbers (up 23.4%), and sunflower seeds (up 14.9%), have seen substantial price increases.
Analysts attribute the lack of price decreases in retail to factors affecting the overall supply chain. "Consequently, the price dynamics of agricultural products in Kazakhstan show signs of restraint, with some categories actually declining. However, the high food inflation in retail (8.5% yearly in April) indicates structural problems across the supply chain, ranging from dependency on imports to logistics and trading margins. These issues work against the benefits of reduced production costs being passed onto the final consumer", as stated in the source.
It's worth noting that certain agricultural products have experienced substantial price hikes over the course of a year.
Previously reported news indicated that prices in Kazakhstan have soared by over 60% in the past five years. In April alone, vegetable prices witnessed a steep rise.
Experts also explained the reasons businesses may choose not to lower prices despite tax cuts.
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- The total inflation rate in Kazakhstan reached an astonishing 10.7% in April 2025, with food prices climbing by 8.5% over the year, despite agricultural products from local producers remaining relatively static or decreasing.
- Despite the stagnant or decreasing prices of agricultural products from local producers, store shelves paint a different picture, with certain agricultural products such as potatoes, cucumbers, and sunflower seeds experiencing substantial price increases.
- Analysts attribute the high food inflation in retail to structural problems across the supply chain, including hurdles in importing goods, logistics, and trading margins, which work against the benefits of reduced production costs being passed onto the final consumer.
- Previous news reports indicated that prices in Kazakhstan have soared by over 60% in the past five years, and in April alone, vegetable prices witnessed a steep rise.
