Kazakhstani Government Confirms High Almaty Inflation

In it July 20th 2007 edition, the Kazakhstan Monitor quoted a report from the office of Mr Berdybek Saparbayev, the Vice Minister of the Economy and Budget Planning of the Republic of Kazakhstan which stated that while the average inflation for the first six months of 2007 for Kazakhstan hovered around 7.9%, inflation in the city of Almaty exceeded 11%.
The rapid growth of inflation in Almaty has fed through to wage hikes in the job market. This has placed pressure on higher education institutions to compensate with increased salaries to ensure that the best quality faculty and staff continue to be recruited to KIMEP both within Kazakhstan and in the international market, according to Dr Ewan Simpson, Executive Director of the Office of the President at KIMEP.
Mr Saparbayev said that although we are currently experiencing “unpleasant” leaps in inflation, he said that “this should not be viewed as a tragedy, as [compared] with other CIS countries”.
Paid service tariffs such as electricity, gas, transportation and other utilities increased by 26% in the first six months of 2007. Mr James Wood, Vice President for Administration and Finance at KIMEP stated that “this increase has affected KIMEP’s 2007-2008 budget. The contingency fund was reduced to cover the increases in utility services, which places a strain on the administration to maintain a balanced budget for the current academic year.”