Uzbekistan’s Monthly Inflation Slows, Yet Rising Service and Utility Costs Drive Prices Higher
Inflation Trends in Uzbekistan: April Update
In April, Uzbekistan witnessed a moderate easing of inflation, as reported by the National Statistics Committee. Despite this overall trend, certain sectors, particularly utilities and air travel, experienced a significant uptick in costs.
Consumer Price Changes
Consumer prices increased by 0.7% in April, a decline of 0.2 percentage points from March’s figures. This slowdown was mirrored year-on-year, yet the cumulative inflation rate since the start of the year rose to 2.9%, compared to 2.6% during the same period last year.
By the end of April, annual inflation stood at 10.1%, slightly lower than the previous month but still 2 percentage points higher than last year.
Regional Variations
The highest annual inflation rates were observed in Tashkent and the Republic of Karakalpakstan, where prices surged by 11%. Conversely, Syrdarya region reported the lowest rate at 8.4%. On a monthly basis, Fergana and Namangan regions experienced the highest inflation at 0.9%.
Food Price Dynamics
Food prices rose by 0.8% in April, contributing to an annual food inflation rate of 4%. This increase was largely driven by a notable 2.5% jump in the prices of oil and fat products, including a 3.2% rise in vegetable oil and a 1% increase in margarine. Meat prices also rose by 1.5%, primarily due to higher costs for lamb and beef. Seasonal factors contributed to a 1.7% uptick in fruit prices, although rice prices fell by 0.7%, along with a 0.5% decrease in vegetable and legume prices.
Non-Food and Service Inflation
In the non-food category, inflation slowed to 0.6% for April, with an annual rate of 6.7%. Clothing and footwear saw modest increases of 0.2% for the month (5.2% annually), while household appliances and cleaning products experienced a 0.3% rise (5.8% annually). Notably, methane fuel prices for vehicles increased by 2.6%, while gasoline prices dipped by 0.4%, and propane decreased significantly by 8.7%.
On the service front, there was a robust 1% increase in paid services during April, bringing annual inflation for services to 26.1%. This figure reflects last year’s tariff hikes in May, though it represents a 1 percentage point decrease since March.
Housing and Utilities
Housing and utility prices rose an average of 2.2%, with significant contributions from tariff hikes on water supply and sewage services in the Samarkand region, hot water and heating in Navoi, and waste collection in Fergana.
Transportation Costs
Airfare prices skyrocketed by over 5%, while road transport and train ticket prices increased by 1.3%. Additionally, mobile phone service tariffs saw an average rise of 2.5% in April.
Conclusion
While April brought signs of easing inflation in Uzbekistan, the rising costs in essential services and transportation remain pressing concerns. As the economy navigates these challenges, continued monitoring of inflationary trends will be crucial for maintaining economic stability.
