Annual inflation Uzbekistan edges up to 8.1% in April from 8.0% in March

By bne IntelliNews May 4, 2024

Inflation in Uzbekistan was in April recorded at  0.93% m/m and 8.08% y/y, according to the national statistics agency.

The figures compared to 0.82% m/m and 11% y/y in April 2023. Annual inflation in March this year was 7.98% y/y.

Food prices in April saw a modest increase of 0.4% m/m, marking the lowest monthly gain registered in the past five years. Non-food prices rose by 1% m/m, while the cost of paid services moved up by 1.8% m/m, a record high for April in terms of the the past five years.

April gasoline prices dropped by 1.8% m/m, but jumped 27.6% y/y.

Uzbekistan's central bank on April 25 kept its benchmark interest rate on hold at 14% for the ninth time running, pointing to risks that inflation could once more accelerate.

Planned hikes of state-regulated prices for certain goods and services, together with the introduction of value-added tax on some goods, could add to price growth, it said.

Monetary conditions were forming in a relatively tight phase in comparison to the upper boundary of the updated forecast on the inflation corridor, the Central Bank of Uzbekistan (CBU) added.

The CBU, which targets inflation of 5%, has revised its 2024 annual inflation expectation to between 9% and 11% from 8% to 9%.

The inflation expectations of the population and entrepreneurs remained above the CBU’s current and projected inflation rates, the regulator noted.

Also last month, the International Monetary Fund (IMF) said that following inflation in Uzbekistan of 10% last year, it was expecting 11.6% this year and 9.7% in 2025.

The CBU’s next rate-setting meeting is scheduled for June 13.

Related Articles

Uzbekistan's 4M24 foreign trade reaches nearly $21bn with 6% growth

Uzbekistan's foreign trade turnover nearly reached $21bn in 4M24, following a 5.9% y/y expansion, reported the ... more

Fitch Ratings affirms Uzbekistan’s Almalyk Mining and Metallurgical Complex's long-term IDR at 'BB-'

Fitch Ratings on May 21 affirmed Uzbekistan’s JSC Almalyk Mining and Metallurgical Complex's Long-Term Issuer ... more

Uzbekistan goes to debt markets with triple-currency trade

Uzbekistan on May 21 issued its first euro-denominated bond as part of its first “triple trancher”—debt issued in three different currencies—aimed at international investors. The issuance was ... more