In April 2024, the inflation rate in Uzbekistan reached 0.93%, as reported by the Statistics Agency under the President. This figure is higher than in April 2023 (0.82%), but lower than the rates recorded between 2020 and 2022.
In annual terms (compared to April 2023), inflation, after gradually decreasing from October of the previous year, rose to 8.08% (having decreased to 7.98% in March).
In April, the prices of food products increased by an average of 0.4% (the lowest in the last five years), non-food items by 1%, and paid services immediately surged by 1.8% (the highest in April in at least the last five years).
According to the Statagency, the average prices of eggs decreased by a further 11.3%. Sugar prices increased by 3.3% (0.2% over the year), milk by 1.8% (11%), flour by 0.4% (4.1%), rice by 0.9% (12.1%), beef and mutton by 0.4% (6.6%), and sunflower oil by 0.4% (-13.6%).
In April, among fruits and vegetables, pumpkins became more expensive by 17.4%, bananas by 9.9%, mandarins by 7.4%, lemons by 6.9%, beets by 6%, cabbage by 3.9%, and potatoes by 1.6%. The price of onions decreased by 1.7%, bell peppers by 2.1%, and cucumbers by 24.8%.
In annual terms, onions decreased in price by 53.7%, carrots by 28.5%, and cabbage by 20.5%. Prices for alcoholic beverages increased by an additional 1%, tobacco products by 0.8%, and cigarettes by 0.7%.
Last month, there was an increase in the fees for heating services (+12.1% in a month) and hot water supply (+12.5%) for the population, attributed to the cancellation of zero VAT rates on the turnover of these services across the entire territory of the republic, as well as the increase in tariffs in the Surkhandarya region and Tashkent.
Furthermore, excluding the Navoi and Surkhandarya regions, in all other regions of the country, the prices of cold water supply and sewage services increased by 12%, also due to the removal of VAT exemptions. In these two regions, in addition to the tax implementation, the tariff rates themselves were raised by 52.8% and 65.5%, respectively.
As a result, water supply and other housing-related services increased on average by 14.6%. The cumulative contribution to inflation from price changes in hot and cold water supply, sewage, heating services, and waste collection for the month reached 0.35 percentage points. Electricity, gas, and other fuel services increased by 1.4%.
The price hikes in the healthcare sector from April were due to the application of VAT on certain goods and services that were previously zero-rated. Since April 1, VAT has been levied on the turnover of medical and veterinary services, medicinal and veterinary products, as well as medical and veterinary supplies.
As a result, medicines and medical products increased on average by 9.5%, while outpatient and inpatient treatment services increased by 2.7%. According to the Statagency, the cost of railway transport services rose in April 2024 due to an increase in ticket prices for suburban trains by an average of 27% nationwide. International air travel on monitored routes became cheaper by 2% on average for the month, and domestic flights decreased by 1.2%, attributed to the volatility of the national currency.
It was reported that in April, gasoline became cheaper by 1.8% (but saw a 27.6% increase over the year), propane by 10.4%, and methane increased by 3.1% (22.4%).
Competition in the mobile device market led to a slight decrease in prices for smartphones and mobile phones. Additionally, changes in tariff policies by certain mobile operators aimed at increasing the volume of services provided reflected in a calculated decrease in the cost of services for the population (-2.9%), as stated in the report.
