Inflation in Uzbekistan accelerates; main reason identified

Inflation in Uzbekistan has accelerated, with the primary driver being the increased cost of energy resources, according to Podrobno.uz, citing the National Statistics Committee. In June, rising tariffs for electricity, gas, coal, and fuel reversed the seasonal decline in food prices, pushing inflation upward.

Prices rose by 0.6 percent over the month, bringing the annual inflation rate to 6.4 percent. Despite a 1.4 percent seasonal decrease in food prices, including vegetables like eggplant, tomatoes, bell peppers, cucumbers, watermelons, and potatoes, this was insufficient to curb the overall inflation rate. The most significant pressures on inflation came from housing services, water, electricity, gas, and other fuels, as well as transportation.

Non-food goods prices increased by 2.3 percent during the month, and services rose by 1.8 percent. Notably, new electricity and natural gas tariffs for the population took effect in June. Electricity prices rose by an average of 9.6 percent across the republic, and gas prices increased by 10.7 percent. The cost of coal, following the removal of state price regulation, more than doubled, contributing significantly to the monthly index increase.

Fuel prices also saw an increase: gasoline prices rose by 3.9 percent, propane by 11.3 percent, and methane by 8.8 percent. Consequently, taxi services increased by 1.3 percent. Amidst these changes, some food items, despite the general seasonal decline, became more expensive, including rice, sugar, lamb, beef, eggs, carrots, and onions.