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Finance 01/01/2019 Inflation in consumer sector of Uzbekistan makes up 14.3% in 2018
Inflation in consumer sector of Uzbekistan makes up 14.3% in 2018

Tashkent, Uzbekistan (UzDaily.com) -- In December of 2018, prices for goods and services in the consumer market of Uzbekistan on average increased by 2.1%, the State Statistics Committee of Uzbekistan said. In general, in 2018, inflation in the consumer sector was 14.3%.

With an average monthly CPI increase for 2018 by 1.1%, since September 2018, inflationary pressure on the economy has increased. Thus, in the last four months of the year alone, the increase in consumer prices for goods and services amounted to 7.6%.

The average monthly CPI increase in 2017 also developed at the level of 1.1%. In September-December 2017, the increase in the consolidated inflation indicator in the consumer sector was 7.6%.

In December 2018, the average monthly price went up by 2.3%, from the beginning of the year their prices rose by 13.8%, which is slightly lower than the total annual inflation rate in the consumer sector (14.3%)

In December 2017 for the month, prices for goods increased by 3.2%, as a whole in January-December 2017 - by 16.0%.

Within the month, commodity prices rose most strongly in January (3.0%) and December (2.3%). In June and July 2018, the average price level of goods, on the contrary, decreased (by 0.6% and 0.5% per month), which was largely influenced by the seasonal decline in prices for fruit and vegetables.

The change in consumer prices for goods relative to December 2017, in general, repeats the trend of the composite CPI.

In December 2018, the growth of tariffs for services for the month was lower than for goods. Tariffs for services on average in December increased by 1.3%. In general, in 2018, the growth of tariffs in this area amounted to 15.8%.

Analysis of monthly consumer price indices by large groups showed that during 2018 changes in tariffs for services and prices for non-food products were characterized by a steady upward trend (CPI) to the previous month for these groups was higher monthly (100.0%). The direction of price changes for each month of the year for foodstuffs had a wider range (from the maximum increase in January (3.5%) to the maximum decrease in July (-2.3%)). The study of price changes for the period from the beginning of the year in the context of these groups showed a similar situation: services for 12 months became more expensive by 15.8%, foodstuffs - by 14.9% and non-food products - by 12.5%.

Analysis of the structure of the impact of price changes for the month showed that in December, leadership in terms of the degree of influence, taking into account the share of each enlarged group, as in the previous three months, was taken by foodstuffs (impact 1.4 percentage points (hereinafter p.p.).

As for the overall CPI for 2018, the leadership in contributing to the aggregate increase also belongs to food products (6.4 p.p), followed by non-food products (4.4 p.p) and services (3.5 p.p).

In specific indicators, the share of the impact of growth in commodity prices on the consolidated CPI for the month is 85.7%, while the share of services is 14.3%.

In general, over the 12 months of 2018, the impact of price increases on the CPI aggregate indicator for goods prevailed over services. The share of rising commodity prices accounted for 75.6%, the share of services - 24.4% of the total impact.

As noted above, foodstuffs prices rose by 3.2% over the month, which ensured CPI growth of 1.4 p.p. Compared to December 2017, the price increase was 14.9%, which led to an increase in the consolidated indicator by 6.4 p.p.

In average annual terms (in January-December 2018 by January-December 2017), foodstuffs increased in price by 20.1%.

In December 2018, of the main foodstuffs, the leadership in terms of the degree of influence on the consolidated CPI for the month belongs to fruit and vegetable products (0.8 p.p out of 1.4 p.p). In second place is the rise in prices for bread products (0.2 p.p out of 1.4 p.p).

In third place according to the degree of influence, several foodstuffs groups are at once: meat and fish, dairy and oil and fat products and sugar, tea and other food products (the contribution of each group is 0.1 p.p).

Regarding the end of 2017, the increase in prices was registered for almost all major groups of foodstuffs, with the exception of eggs, which for the year became slightly cheaper (by 0.5%).

In December, prices continued to rise for the main types of bread products: flour, bread and bakery products, rice and main types of cereals and legumes rose in price in a month in the range from 0.7% to 3.4%.

The most significant in December, rice prices went up in Kashkadarya region (7.8% per month), prices were minimal in Tashkent (2.2% per month, and in Bukhara and Ferghana regions rice prices remained at the level of November 2018 .

In general, in 2018, the highest growth in rice prices was in Khorezm region (more than 1.9 times), the minimum - in Kashkadarya region (more than 1.5 times).

In the past month, wheat flour significantly increased in price in Samarkand region (5.9%), the lowest was the rise in prices in Kashkadarya region (0.3%). In Bukhara, Surkhandarya and Syrdarya regions, the price of flour for a month has not changed.

In December of this year, meat and poultry added 1.3% to the price, in general, for 12 months of 2018, prices rose by 21.2%. Fish and canned food from it in December for a month became more expensive by 1.6%, for the year prices for fish products increased by 30.4%.

The peak in prices for a month for mutton and beef (except boneless meat) was registered in June, when for a month prices rose by 6.4% and 6.0% respectively. In general, for the year the price situation looks like this: beef (except for boneless meat) became more expensive by 26.9%, lamb - by 24.6%, boneless beef - by 14.9%.

The most significant in December beef (except for boneless meat) went up in Tashkent and Khorezm regions (2.9% and 1.4% per month).

Lamb in December, more tangibly than in other areas, became more expensive in Samarkand and Tashkent regions (2.6% and 2.0% per month).

Boneless beef prices in December were stable and remained at the level of the previous month.

Since the beginning of the year, beef and lamb went up in price to the maximum in Syrdarya region (beef with bones - by 39.1%, lamb - by 34.4%, boneless beef - by 17.7%). The minimum growth was in prices for beef with bones in Kashkadarya region (19.2%), boneless beef in Jizzakh region (11.0%), lamb meat in Andijan region (16.1%).

Starting from August, prices for poultry products acquired a steady upward trend. So, in August-December of the current year, eggs added 32.1% in price, poultry meat (except chicken legs) - 20.6%, chicken legs and drumstick - 12.7%.

In December of the current year, the peak of growth in prices for fruits and vegetables per month was registered (10.0%). In general, over the year, the average level of prices for fruits and vegetables increased by 4.7%.

Analysis of changes in prices for fruits and vegetables over the period since the beginning of the year showed that the peak of their level prices for fruits and vegetables reached in April this year (19.5% compared to December 2017). The lowest was the price level in August (20.5% lower than at the end of 2017). For the period from May to August (the time of the main saturation of the market with the products of the new crop), prices for fruit and vegetable products decreased by 33.5%, and for the last four months, fruits increased in price by 31.7%.

From fruits and vegetables in December of the current year, the maximum rise in prices for the month was registered for cucumbers (1.9 times), the largest decrease was for carrots (2.9%).

As compared to the end of 2017, white cabbage (2.4 times) rose in price most of all, the maximum price decrease was recorded for garlic (42.8%).

Since the beginning of the year, there has been a rise in prices for apples in the Bukhara region (14.9%) higher than in other regions. In the same region, the maximum decline in grape prices was recorded (59.5%). Dried fruits significantly increased during the year in Tashkent (42.9%) and Kashkadarya (32.4%) regions, the rise in prices in Khorezm region (10.6%) was minimal.

For the year, potatoes fell in all regions of the country. The most noticeable decline was in Andijan region (36.3% per year), less pronounced was the decline in prices in Khorezm (18.2% per year) and Tashkent (20.5%) regions. Cabbage, by contrast, has risen significantly in all regions of the country. Over the year, the average increase in prices for it in the republic was 2.4 times.

In a number of regions, the rise in prices significantly exceeded this indicator: in Bukhara region cabbage became more expensive by 3.0 times, Khorezm and Namangan regions - by 3.1 times. The minimum for this period was the rise in prices in the Republic of Karakalpakstan (1.8 times).

In the regional context, the range of price changes relative to December 2017 for cucumbers was wide. Most of all, cucumbers went up in Navoi (1.7 times), Samarkand (1.8 times) and Namangan (2.0 times) regions. Less pronounced was the rise in prices for cucumbers in the Syrdarya region (10.5%) and Tashkent (4.2%).

Tomatoes for the year fell as much as possible in Syrdarya region (by 40.1%), the lowest was the decline in prices in Bukhara region (by 0.6%).

Most of the year carrots went up in Kashkadarya and Khorezm regions (2.6 times). The minimum increase occurred in Namangan region (1.5 times). For 12 months, prices for onions decreased throughout the country in the range from 48.9% (Namangan region) to 17.1% (Khorezm region).

Excluding changes in prices for fruits and vegetables, the CPI for foodstuffs in December 2018 compared to the previous month was 1.9%, and by December 2017, it was 16.9%.

The rise in prices for non-food products in December 2018 by 1.3% led to an increase in the consolidated CPI for the month by 0.4 p.p. In general, over January-December 2018, non-food products went up by an average of 12.5%, which resulted in an increase in the consolidated CPI over this period by 4.4 p.p.

In December, tobacco products (4.9%) and communications (3.1%) occupy leading positions in price growth from non-food products.

However, according to the degree of influence on the consolidated CPI for December 2018, taking into account the specific weight of each group, clothing belongs to the championship (price increase by 1.9% and impact 0.13 p.p). Price increases were recorded for almost all major types of men’s, women’s and children’s clothing for the winter season (jackets, coats, sweaters, tights, etc.). One of the factors behind this price increase was the seasonal increase in demand and the change in the position of the national currency against the US dollar.

According to the Central Bank of the Republic of Uzbekistan, from November 15 to December 15 of the current year, the US dollar exchange rate rose by 0.5% (from 8271.27 to 8312.64 soums for 1 US dollar). In general, in January-December 2018, there was a significantly higher price for coal for household use (more than 1.7 times) than for other non-food products.

For information: on the basis of the Protocol of coordinating the retail price for coal sold to the population and budget organizations through the coal warehouses of the “Temir-Yulyonilginitamin”, Uzbekistan Temir Yollari, from July 1, 2018, increased prices for coal were introduced.

Leadership in influencing the increase in the consumer price index for non-food products for 12 months of the current year belongs to construction materials (impact on the consolidated CPI of 0.8 p.p), clothes (0.8 p.p), fuel for cars (0.6 p.p) to coal (0.6 p.p) and footwear (0.3 p.p). The total increase in prices for the listed groups of goods ensured CPI growth in annual terms by 3.0 p.p.

Prices for tobacco products increased significantly in January (8.8%), May (5.9%), September (6.0%) and December (4.9%). On average, cigarettes went up by 28.0% per year.

The main rise in prices for personal care products was recorded in January (2.7% per month) and December (2.3% per month). In the same months, the main growth of prices for household textiles was registered (by 2.5% and 2.1% respectively).

Since the second half of the year, the situation in the construction materials market has stabilized. So, if in the first half of the year consumer prices for building materials increased by 17.3%, in the second half of the year this figure was only 0.1%.

Brick for 12 months of 2018 went up by 52.1%, cement - by 21.7%, wallpaper - by 21.2%, slate - by 14.8%, putty - by 14.1%, sawn-timber - by 9.9%, paints - by 8.9%, linoleum and laminated plates - by 8.8%.

Prices for motor fuel for the year increased by 23.4%. The maximum price increase for the month occurred in January (4.6%), June (7.2%) and November (8.1%). Gasoline prices rose in November by an average of 4.9%. On the basis of Resolution No. 897 of the Cabinet of Ministers of the Republic of Uzbekistan dated November 1, 2018 “On the phased change of prices and tariffs for fuel and energy resources” from November 16, 2018, the price of gasoline Ai-80 is 4000 soums per liter, brand Ai-91 – 4500 soums per liter, diesel fuel - 4800 soums per liter, ECO diesel fuel - 4900 soums per liter.

Tariffs for services for the population in December of the current year increased by 1.3%, which led to the growth of the consolidated CPI for the month by 0.3 p.p. In January-December of the current year, tariffs in this area increased by 15.8%, which ensured an increase in the consolidated indicator for the period by 3.4 p.p.

The key factor in the growth of prices for paid services of the population in December of this year was the increase in tariffs for domestic services and passenger transport - by 1.8% and housing and communal services - by 1.4%. The cumulative effect of this price increase on the consolidated CPI for December was 0.2 p.p.

In December, in all regions, with the exception of Navoi, Syrdarya, Tashkent regions and Tashkent city, increased prices for cold water supply and sewerage services were introduced.

On average in the republic, the growth of tariffs for the month amounted to 13.0%.

Tariffs for hot water supply and heating in December increased in 6 regions by 10.0% (in Bukhara, Samarkand, Tashkent, Ferghana, Khorezm regions and Tashkent city).

In general, for 12 months of 2018, the consumer price index for services was influenced by the growth of regulated tariffs in the utility sector, increase in the cost of travel in passenger transport, recreation services, educational services, sports, communications, as well as domestic services.

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