The government intends to undertake a number of anti-inflationary measures

/INTERFAX-KAZAKHSTAN, Almaty, May 5, 05/ - The government of Kazakhstan intends to undertake a number of measures aimed to restrain a soaring inflation. Most of all, the focus is being made on vegetables and meat, Danial Akhmetov, prime-minister, told government's session on Thursday dedicated to a discussion of anti-inflationary measures. "It must be said that on May 10 together with other parties I'll be considering issues of medium-term inflation restraining. This will also touch the issue of our national currency", D.Akhmetov noted. He again expressed his concern over official statistical data according to which the inflation rate in Kazakhstan in period from January through April 2005 rose by 0.6% to 2.5%. "If we grow at such pace, then all our forecasts in respect of consumer prices indices will be violated, which may affect macroeconomic indicators in significant way", - Akhmetov told. According to the Ministry of economics and budget planning, average annual inflation rate in 2005 is forecast within 5-7%. Akhmetov said that according to experts' estimates in the second half of the current year money supply in Kazakhstan would increase by more than KZT100 bn. primarily due to increase in remunerations for state budget- supported employees in average by 32% - or by KZT53 bn. and increase in pensions by KZT29 bn. (current rate KZT131.31/$1). As known, the President Nazarbayev in his nation's address tasked the government with the increase of social benefits. In this connection law draft has been developed which aims to introduce amendments to existing republic budget for 2005 to be discussed at joint session of both parliament's chambers. "Inflation must not level down the effect of social benefits increase, designated for pensioners, low income families and employees supported by the state budget", the PM underlined. D.Akhmetov told that by results of 4 months of the current year "the main contribution to the inflation rise" was done by vegetables and fruits, accounting for 0.89%, as well as meat and meat products - 0.5% (out of 2.5% of inflation rate for Ja-April - IF-K). He noted at the same time that price increase on those products which account for only 15% in retail turnover totaled 20% and 4.5% respectively, all while a year ago those figures were 9.4% and 2.8%, respectively. In 2004, the government head told, retail turnover in Kazakhstan exceeded KZT1,100 bn. PM believes that in order to restrain inflation growth in the current year the "volume of products traded should be increased taking into account the volume of funds circulating within the country, by more than $600 m." In this connection D.Akhmetov underlined the significance of undertaking measures on stabilization of price rise, and first of all prices on vegetables, fruits, meat and meat products. He supported the initiatives of government agencies, which disclosed their proposals to the session. In particular, Berdibek Saparbayev, chairman of customs control committee proposed to lower custom tariffs levied on imported vegetables and fruits, while Kazhmurat Nagmanov, transportation and communications minister proposed to decrease railway charges for import of aforementioned produce. Moreover, Bakhytzhan Sagintayev, head of anti-trust agency, informed during joint session that his agency enacted a decree, according to which tariff for railway transportation services in respect of meat, fruits and vegetables was lowered by 50% starting from May 10. Besides, he noted that anti-trust body concluded agreements with largest natural monopolies such as Kazakhtelecom JSC (telecommunications), Kazakhstan temir zholy JSC (railway) and KEGOC JSC (utility) - under which aforementioned companies pledge not to hike tariffs until the end of the year. In conclusion the PM informed that in coming days he would sing a resolution of the government, which would reflect first -aid measures on inflation restraining. He also tasked local municipalities to adopt effective measures on restraining price increase for major consumer goods, in particular, to improve economic conditions of trading in fruits, vegetables and meat. [2005-05-05]