Rising inflation in Kazakhstan, shown up by the rising food and fuel prices is posing serious challenges forward for the emerging market countries according to the market analyst.
It has also led to a mass protest in Kazakhstan that was given a heads up by the fuel hikes.
Inflation poses major challenges in developing countries, according to Rachel Ziemba, founder of research firm Ziemba Insights, pointed to major protests over fuel prices.
“A lot of countries are facing a challenge of rising food and fuel prices, particularly, since it is also dovetailing with supply chain restrictions and a variety of other issues,” said Rachel Ziemba, founder of Ziemba Insights, a research firm.
“The challenge is that a number of emerging markets that are already struggling to grow even before the pandemic and throughout it… you’re seeing fiscal tightening and monetary tightening at the same time,” she said.
There are many factors including the supply chain disruption and the tightness of financial and financial issues that exacerbate these problems.
The unrest began after the Kazakh government announced plans to reduce the price of liquid fuel, which is widely used as automotive fuel in the Central Asian country.