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Finance 29/05/2018 CBU: Prices for basic goods in Uzbekistan declined in May
CBU: Prices for basic goods in Uzbekistan declined in May
Tashkent, Uzbekistan (UzDaily.com) -- Regular observations of the Central Bank of Uzbekistan on price changes in the consumer market of the republic show that in the first four weeks of May, prices for observed group of goods and services in the aggregate decreased by 0.6%.

Prices for food products decreased by 1.1%, non-food products - by 0.9%, while services went up by 1%.

The price dynamics was formed, mainly, under the influence of such factors as strengthening of the exchange rate of the Uzbek soum, improving of the foreign trade conditions and the competitive environment, the receipt of a new crop of vegetables in the consumer market.

One of the fundamental factors of observed price stability was also a gradual decrease of inflation expectations of the population and business entities.

Despite the general decline in food prices, the price dynamics within this group was multidirectional. So, in connection with the massive supply of tomatoes, cucumbers and potatoes to the markets, prices for these goods fell by 63.8%, 30.2% and 27.6%, respectively. Also, the price of butter dropped by 2.4% and chicken meat by 1.3%.

At the same time, rice on average went up by 16.7%. According to the surveys, the main reasons for the rise in rice prices are the expected dry year, the deficit of irrigation water compared to previous years, the possible shrinking of crop areas, and postponement of rice supply from the side of the harvesters.

At the same time, as a stabilizing factor, the level of rice prices can be expanded by the expansion of its imports, maintaining a sustainable supply of this product in the domestic market.

At the same time, for the considered period the moderate growth of prices for meat products continued. In particular, beef and mutton have risen in price by 5% and 3.7% respectively. Surveys among specialists in this sphere and farmers show that this increase is associated with an increase in feed prices in the retail market, despite the preservation of exchange prices at the same level, as well as inadequate vegetation cover in pastures after a relatively low level of precipitation.

The prices for non-food products, especially household appliances and personal hygiene products, were formed in the conditions of increasing foreign trade, mainly in border regions, gradual improvement of the competitive environment in these segments of the consumer market, as well as strengthening the exchange rate of the national currency.

Of these groups of goods, prices for TVs have fallen by 8%, vacuum cleaners by 4.4%, refrigerators and electric kettles by 1.8%, soap by 3.5% and shampoos by 1.9%.

The increase in tariffs for natural gas in April led to a rise in price of services for freight and passenger transportation by road. The average citywide bus fare has risen by 13.7% due to a significant increase in fees in some regions, while automobile transportation - by 1.6%. Also there was an increase in tariffs for medical services by 2.4%.

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