Monthly inflation slows in Uzbekistan, but service costs and utility tariffs push costs up

Inflation in Uzbekistan showed signs of easing in April, although the cost of services – particularly utilities and air travel – continued to rise at an accelerated pace, according to the latest report from the National Statistics Committee.

Consumer prices rose by 0.7% in April, marking a 0.2 percentage point decline compared to March. The same slowdown was observed year-on-year, compared to April 2024. However, inflation since the beginning of the year has accelerated to 2.9%, up from 2.6% over the same period last year.

Annual inflation stood at 10.1% at the end of April, slightly lower than in March, though still 2 percentage points higher than last year.

The highest annual inflation rates were recorded in Tashkent and the Republic of Karakalpakstan, where prices rose by 11%. The lowest rate was observed in Syrdarya region at 8.4%. In terms of monthly inflation, Fergana and Namangan regions led the country with increases of 0.9% compared to March.

Food prices rose by 0.8% in April, pushing annual food inflation to 4%. This was largely driven by a 2.5% increase in prices for oil and fat products, including a 3.2% jump in vegetable oil and a 1% rise in margarine.

Meat prices rose by 1.5%, driven primarily by increases in lamb and beef. Seasonal factors contributed to a 1.7% increase in fruit prices. In contrast, rice became 0.7% cheaper, while vegetable and legume prices dropped by 0.5%.

Inflation in the non-food segment slowed to 0.6% in April, with an annual rate of 6.7%. Clothing and footwear prices rose by just 0.2% over the month (5.2% annually), while prices for household appliances and cleaning products increased by 0.3% (5.8% annually). Methane fuel for vehicles rose by 2.6%, whereas gasoline fell by 0.4% and propane by a notable 8.7%.

In contrast, the cost of paid services accelerated, increasing by 1% in April. Annual service inflation reached 26.1%, influenced by last year’s tariff hikes in May. However, this is a 1 percentage point decrease compared to the end of March.

Housing and utility service prices across Uzbekistan rose by an average of 2.2%. The main contributors were tariff hikes for water supply and sewage in Samarkand region, hot water and heating in Navoi region, and waste collection in Fergana region.

Airfare prices surged by more than 5%, while road transport and train ticket prices increased by 1.3%. Additionally, mobile phone service tariffs rose by an average of 2.5% in April.