After a six-month decline, the inflation expectations of Uzbek citizens went back on the rise again in July, according to central bank data.
Average inflation forecast by respondents among the population was 14.2%, up by 1.2 pp month on month. The median was 11.6%, also more than a percentage point above the finding of the previous survey.
At the same time, the indicators remain noticeably lower than the figures recorded last year and at the beginning of this year. As of January, the average inflation expectation stood at 18.9%, while the median exceeded 15%.
Of the survey participants, 30% assumed that the rate of price growth would remain in the 9-12% corridor. The number of respondents expecting inflation to fall noticeably decreased, while the number of those predicting further price acceleration increased.
Dynamic exchange rate depreciation of the Uzbek som generally feeds into higher inflation forecasts. In July, 70% of respondents noted the weakening som.
The average level of the inflation expectation among businesses in July rose to 14.4% (+0.9 pp). The median level was noticeably lower at 11.8%.
Headline inflation in Uzbekistan in August was 9% while m/m inflation was 0.5%.
Don’t just follow the news—understand it.
The IntelliNews PRO service includes access to reports, exclusive market data, and more news that decision-makers care about. Stay ahead of the market with IntelliNews PRO.
Sign Up NowRelated Articles
Eurasian Development Bank redeems €286mn Eurobond
The Eurasian Development Bank (EDB) said on March 26 it had fully redeemed a five-year Eurobond, meeting all obligations to investors at maturity. The bank paid a total of €286mn, covering both ... more
Georgia’s TBC Bank weighs up separate IPO for TBC Uzbekistan digital bank
London-listed TBC Bank Group PLC (LON: TBCG) is weighing up conducting a separate initial public offering (IPO) for its TBC Uzbekistan digital bank business. Reuters on February 24 ... more
IndiGo cancels Central Asian flights until late February over Iran tensions
Indian budget carrier IndiGo has cancelled all flights to and from Tbilisi, Almaty, Baku and Tashkent until February 28 due to the developing situation around Iran, the airline announced on February ... more