Annual inflation slows in Uzbekistan despite utility tariff increases

This marks the second consecutive month of deflation. Since the beginning of the year, prices have increased by 4% overall, with an average monthly inflation rate of 0.6%. This is slightly lower than the same period in 2024, when prices rose by 4.9% at a monthly average of 0.7%.

Annual inflation accelerated slightly in July to 8.9%, up from the levels recorded in May and June. However, it remains below the 10.5% annual rate observed in July 2024.

The highest monthly deflation was recorded in the Republic of Karakalpakstan, Khorezm, and Andijan regions (–0.4%). In contrast, prices in Syrdarya region rose by 0.7% over the month. Year-on-year, the highest inflation was observed in Fergana (9.9%) and Syrdarya (9.5%) regions.

Food prices fell by 1% in July, making it the main contributor to overall deflation. Fruit and nuts became over 9% cheaper, while prices for vegetables, tubers, and legumes declined by 4.8%.

Modest price drops were also seen in dairy products and eggs (–0.8%) and cereal-based goods (–0.1%). Meanwhile, meat prices rose nearly 2% during the month.

On a year-over-year basis, food price inflation has notably accelerated. In July 2024, food prices had increased by 2.9% over the previous 12 months, but the current annual figure has reached 6.5%.

Inflation in non-food goods remains relatively low at 0.2% for the month and 7.1% on an annual basis. Price growth for clothing, footwear, and household appliances slowed to 0.1% in July (with annual increases of 4.4% and 4.9%, respectively).

The services sector continues to be the main driver of inflation, with prices rising 0.9% in July and 16.3% over the past year. This is largely attributed to increases in utility tariffs, which rose by 7.5% nationwide.

Water supply tariffs went up in four regions, while waste removal fees increased in Navoi and Samarkand. In Jizzakh, Kashkadarya, and Fergana regions, residents saw higher service fees for apartment building maintenance.