Uzbekistan’s Consumer Confidence Plummets to Record Low
Consumer Confidence in Uzbekistan Hits Record Low Due to Accelerating Inflation
A recent research study conducted by Freedom Finance has revealed alarming trends in consumer confidence in Uzbekistan. In May, the consumer confidence index plummeted by 3.4 points, reaching its lowest level in recent years. Analysts attribute this significant decline to the sharp acceleration of inflation in the country.
The consumer confidence index dropped to 126.8 points in May, marking a record low. This decline was observed across all five sub-indexes, indicating a widespread pessimism among Uzbekistanis regarding economic dynamics.
Specifically, the sub-index evaluating changes in the economic situation experienced a sharp decrease of 7.8 points to 117.5. A substantial percentage of respondents reported a deterioration in the economic situation over the past year, with only one-third of those living in Tashkent city expressing optimism.
Furthermore, the sub-index reflecting changes in personal financial situation also declined by 2.9 points to 128.4. The research highlighted significant price increases, with nearly half of the population feeling the impact throughout the year. Utility tariffs and essential goods such as meat and poultry saw the highest price hikes.
Respondents also expressed concerns about future inflation rates and the depreciation of the Uzbekistani som against the dollar. Many anticipate further economic challenges in the coming months.
Freedom Finance analysts attribute the decline in consumer confidence to administrative decisions that have accelerated inflation in Uzbekistan. The Central Bank’s report showed a perceived inflation rate of 14 percent in May, with regional variations in price hikes.
Overall, the combination of rising prices and economic uncertainty has contributed to a bleak outlook among Uzbekistanis. It is crucial for policymakers to address these inflationary pressures and restore confidence in the country’s economy to ensure long-term stability and prosperity for its citizens.
