Kazakhstan Inside

The Pan-National Diet — We Spend More, We Eat Less

The Bureau of National Statistics reports that Kazakhstanis are spending more money on food, but they eat less.  Which means, soon we all will be poor, but slim.

The DataHub telegram-channel makes reference to the official statistics and reports that in the past 9 months, Kazakhstanis spent KZT 4.24 trillion on food.  The factual prices grew by 10.8% (KZT 411.8 billion) year-on-year, while the total mass of food-stuffs sold by retailers decreased by 6.4%, in the same period.

There is No Money, But You Hold Tight

In monetary terms, retail food sales from January to September have been consistently increasing, with rare exceptions, when not adjusted for inflation. However, in terms of quantity, they have been declining for three consecutive years. This means that not too long ago, there were times when Kazakhstanis both spent more and consumed more. Not likewise it is now,

As the publication reports.

Indexes of Retail Food-Stuffs Sales in January-September 2023 (%, year-on-year, National Bureau of Statistics of the Agency of Strategic Planning and Reform of the Republic of Kazakhstan). Above curve stands for index of retail prices, Below curve stands for index of food-stuffs sales volumes

In early September, the analytical portal LS, also citing data from the Bureau of National Statistics, published information indicating that low-income Kazakhstanis consume three times less food than their well-off counterparts. Both groups account for 10% of the population, respectively.

According to the conclusions of statisticians, the consumption trends among low-income groups of citizens remain consistent from year to year, with a prevalence of more affordable staples like bread and cereals, while people with higher incomes lean towards meat and seafood.

For example, in the second quarter of 2023, low-income Kazakhstanis consumed nearly 40 kg of bread and cereals per person, while their well-off counterparts consumed only 26 kg. On the other hand, there is a significant gap in the opposite direction when it comes to meat consumption, with 9.8 kg for low-income individuals compared to 35.7 kg for the well-off.

Even relatively affordable (at least according to official reports) milk and dairy products are consumed 3.3 times less frequently in the diets of low-income Kazakhstanis compared to their affluent compatriots—30.6 kg versus 103.3 kg, respectively.

Even the consumption of vegetables in agrarian Kazakhstan, with substantial subsidies to producers, is beyond the means of many people. Besides potatoes, low-income individuals had, on average, 11.6 kg of various vegetables on their tables in a quarter, while well-off people consumed 32.5 kg. Even the seemingly most affordable vegetable, potatoes, is consumed unevenly. The poorer a person is, the less potatoes are in their diet. The negative gap in fruit consumption also amounted to 3.5 times. This clearly indicates that low-income individuals are depriving themselves even of basic food items, not to mention expenses for various strategic necessities like clothing and furniture purchases, obtaining a good education, and building a financial safety net.

Our Precious Food-Stuffs

We’ve looked at the data from the Bureau of National Statistics on inflation for September 2023, and we’re not surprised by the overall figures. Neither DataHub nor LS, despite the seemingly positive general economic picture, are surprised that food prices continue to rise rapidly compared to 2022.

Over the year, food prices have increased by 11.4% (in August 2023, it was 12.4%), non-food prices have risen by 12.1% (in August 2023, it was 13.5%), and prices for paid services have gone up by 11.9% (in August 2023, it was 13.9%),

as stated in the analytical report by the Bureau of National Statistics.

Compared to September 2022, the following price increases have been observed:

  • Cabbage increased by 74.3%.
  • Rice increased by 41.3%.
  • Grapes increased by 37.9%.
  • Oranges increased by 32.8%.
  • Canned milk increased by 26.4%.
  • Non-carbonated beverages increased by 23.9%.
  • Carrots increased by 23.4%.
  • Bottled mineral water increased by 20.8%.
  • Pasteurized milk increased by 18.2%.
  • 2.5% fat kefir increased by 17.5%.
  • Sour cream increased by 16.6%.
  • Bakery and flour products increased by 15.9%.
  • Butter increased by 14.8%.
  • Eggs increased by 13.6%.
  • Pasta increased by 12.6%.
  • Tea increased by 11.5%.

Over the year, prices for bakery products and cereals increased by 13.3%, meat and meat products increased by 8.6%, contributing 1 and 1.1 percentage points to inflation, respectively. The 16.1% increase in dairy products contributed 0.6 percentage points, fruits and vegetables (15.9%) contributed 0.8 percentage points, and non-alcoholic beverages (15%) contributed 0.3 percentage points to the annual inflation, according to official statistics.

So, when looking at the rise in food prices, it becomes evident why people are consuming less while spending more. This is why individuals with lower incomes are relying more on bread and cereals.

Alexandra Alyohova

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