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Finance 01/04/2019 Prices grow by 4.3% in Uzbekistan in January-March
Prices grow by 4.3% in Uzbekistan in January-March

Tashkent, Uzbekistan (UzDaily.com) -- In March 2019, the average consumer prices for goods and services in Uzbekistan increased by 1.2%, the State Statistics Committee of Uzbekistan said in a statement.

In general, in January-March 2019, goods and services in the consumer market became more expensive by 4.3% in January and February 2019, prices in the consumer market increased by 1.5% and 1.6% over the month.

Compared to March 2018, the average price level in the republic’s consumer sector increased by 13.6%.

Products in March 2019 went up by 1.2%, including food - by 1.5%, non-food - by 0.8%. Services have become more expensive by 1.2%.

Analysis of the structure of the impact of price changes for the month showed that in March 2019, the main contribution to the growth of the composite consumer price index, taking into account the proportion of each enlarged group, made price changes for food products (0.6 percentage points).

In March 2018, the contribution of food prices growth also prevailed (0.6 percentage points vs. 0.4 percentage points non-food products and 0.1 percentage points services).

The study of the dynamics of the impact of price changes on the main groups of goods and services on the growth of the consolidated CPI for each month of the first quarter of 2019 showed that the peak effect of the rise in prices for food products for this period was noted in January (1.2 percentage points) and in the following two months, the impact of price changes on food in absolute terms declined (in February it was 0.9 pp, in March - 0.6 pp), although it remained predominant.

A comparison of the structure of the influence of the main groups on the growth of the consolidated CPI for March 2018 and 2019 against the previous month showed that the share of food products remained virtually unchanged (54.2% in March 2018 vs. 54.3% in March 2019), while the focus shifted towards increasing the share of the impact of rising prices for services (9.6% - in March 2018 versus 22.0% - in March 2019) due to a decrease in the share of the impact of rising prices of non-food items (36.2% - in March 2018 against 23.7% in March 2019).

The share of the impact of rising food prices on the growth of the consolidated CPI gradually decreased over the month from January to March 2019 (January — 80.0%, February — 55.7%, March — 54.3%). The dynamics of the impact of higher prices on non-food products during this period was uneven (in January it was 13.3%, in February it increased to 32.9%, in March it decreased to 23.7%). The share of the impact of services gradually increased (from 6.7% in January to 22.0% in March).

The dynamics of the share of the influence of price changes of food products and paid services on the growth of the consolidated CPI compared to December of the previous year repeated the trend of short-term changes against the previous month (the share of influence of food products decreased from 80.0% to 65.1%, services increased from 6.7% to 11.6%). The contribution of the increase in prices for non-food products in January amounted to 13.3%, in February - 22.2%, in March - 23.3%.

As noted above, food products rose in price by 1.5% over the month, which ensured CPI growth for this period by 0.6 percentage points.

Compared to the end of 2018, food prices increased on average by 6.4%.

In annual terms (March 2019 by March 2018), goods of this group became more expensive by 15.3%.

In the first quarter of 2019, despite the general trend of rising food prices relative to December 2018 (6.4%), price changes for each month of this period are characterized by a downward trend in price growth rates. So, if in January, food products went up by an average of 2.8%, in the following months, prices rose by 2.0% (February) and 1.5% (March).

Of food products, the leadership in price growth in March 2019 belongs to fruit and vegetable and dairy products (respectively 4.5% and 1.5% per month). Egg prices declined two months in a row (in February - by 0.2%, in March - by 1.2%).

In general, over the three months since the beginning of the year, fruit and vegetable products have risen on average by 17.7%, including fruits - by 21.9%, vegetables - by 20.5%, potatoes - by 1.3%.

Further, according to the degree of price growth relative to December 2018, dairy products (8.1%) and public catering (8.0%) follow.

Of the fruits and vegetables, prices for cabbage (15.7%), melons (watermelons - 11.1%, melons - 12.7%), tomatoes (10.4%), grapes (9.4%), carrots (7.2%) and onions (6.2%) rose most significantly in the past month. Against this background, cucumbers became cheaper by 3.1%, potatoes - by 0.4%. Prices for other observed types of fruits and vegetables for the month have not changed significantly.

As of December 2018, the lead in price growth belongs to grapes (49.5%), watermelons (45.1%), tomatoes (44.6%), melons (34.1%), cabbage (26.0%), pears (25.1%), cucumbers (14.6%) and bananas (14.2%).

In annual terms, the prices of cabbage (3.1 times), carrots (2.1 times), melons (37.1%) and watermelons (34.9%), citrus and dried fruits (17.2 % and 17.0%) rose. At the same time, prices for garlic (by 41.6%), grapes (by 33.0%), potatoes (by 26.2%), onions (by 19.0%) and apples (by 18.6%) decreased.

For the observed trade objects, on average in the republic in March 2019 cabbage grew most of all (15.7%). In the regional context, the highest was the rise in prices for it in Andijan region (27.8%), the minimum - in the Republic of Karakalpakstan (8.4%).

For a month, prices for cucumbers decreased in all regions: maximum - in Tashkent (by 8.5%), minimally - in the Republic of Karakalpakstan (by 0.7%).

Compared to December 2018, grapes significantly increased in price. The rise in prices was most vividly manifested in Namangan region (by 2.0 times), prices in Kashkadarya region rose minimally (by 29.5%).

In comparison with March 2018, the lead in price growth belongs to cabbage (3.1 times). Most of all, it has risen in price in Namangan region (3.8 times), the lowest recorded increase in prices in the Republic of Karakalpakstan (2.4 times). Over the year, garlic became cheaper in all regions: the maximum decrease was observed in Bukhara region (by 54.1%), the minimum - in Jizzakh region (by 24.3%).

From dairy products in March 2019, milk became more expensive by 2.4%, kefir, sour milk - by 2.3%, suzma - by 2.2%, processed and sausage cheeses - by 2.1%, cream - by 1,5%.

Regarding the end of 2018, kefir and sour milk rose by 12.5%, milk - by 11.6%, cream - by 10.3%, suzma - by 9.6%.

In March 2019, most of the month, prices for dairy products increased in the Khorezm region (3.2%), the lowest was the increase in prices in the Namangan region (0.5%).

Since the beginning of the year, the maximum dairy products have risen in price in Khorezm region (12.0%), minimally in Andijan region (5.2%).

However, according to the degree of influence on the CPI aggregate indicator for the month, taking into account the specific weight of each group of goods, the top three include fruits and vegetables (impact 0.37 pp), meat products (0.08 pp), dairy products, sugar, tea and other food products (by 0.05 pp).

Of the basic foodstuffs in March 2019, the most expensive was milk (2.4%). Eggs and poultry meat (except chicken legs), by contrast, became cheaper over the month by 1.2% and 0.4%.

Compared with the prices of December 2018, the lead in their growth belongs to milk (11.6%), while the price of eggs, by contrast, declined by 0.1%.

Compared to March 2018, rice rose in price more than the others (1.6 times). Sugar for this period became cheaper by 4.2%.

Of the other observed types of food products in March 2019, the beans added 2.1% per month, boiled sausage - 1.9%, half-smoked sausage, live and chilled fish - 1.8%, smoked meat and pastry - 1.7 % buckwheat - 1.5%, butter - 1.3%.

Non-food products in March 2019, on average, became more expensive by 0.8%, which led to an increase in the consolidated CPI for the month by 0.3 percentage points

In general, in the first quarter of this year, prices for goods of this group increased by 2.8%. In annual terms, compared to March 2018, the rise in prices for non-food products amounted to 10.4%.

The analysis of price changes over January-March 2018 and 2019 showed a tendency for a slowdown in the growth rate of prices for non-food products. So, if in the first three months of 2018, the increase in prices for non-food products reached 4.8%, in the same period of 2019 this figure was 2.8%.

In comparison with March 2018, the rise in prices for non-food products in March 2019 was also lower (0.8% versus 1.1%).

Of the non-food product groups with the largest share, the main price increase in March of the current year was registered for personal hygiene products (2.1%), clothes (1.7%) and footwear (1.3%). Fuel prices for cars, by contrast, for the month decreased by 0.3%, including propane - by 1.5%, methane - by 0.3%.

According to the degree of influence on the consolidated CPI for March 2019 to the previous month, taking into account the share of each group, the primacy belongs to clothes, which, with a 1.7% rise in prices, led to an increase in the consolidated CPI by 0.12 percentage points

The second place in terms of the impact on the CPI aggregate indicator is occupied by shoes (0.04 pp).

The top three leaders in terms of their impact are personal care products (0.03 pp).

Of the other non-food product groups with a smaller share in March 2019, there was a rise in prices for washing and cleaning products (2.4%), agricultural implements (1.7%), computers and peripheral equipment (1.4%), haberdashery and watches (0.9%), as well as furniture (0.6%).

In general, in January-March 2019, the increase in prices for books, newspapers and magazines (17.0%), communications equipment (10.1%), which are above the average group value (non-food products - 2.8% by December 2018) and cleaning products (8.9%), wares (6.6%), basic household goods and electrical appliances (6.4%), clothes (3.6%), household textiles (3.4%), kitchen utensils and appliances (3.3%), furniture (2.9%).

Tariffs for services for the population in March 2019 increased by 1.2%, which led to an increase in the consolidated CPI for the month by 0.3 percentage points

Compared to December 2018, tariffs for paid services to the population in March 2019 increased on average by 2.5%.

Compared to March of the previous year, the increase in tariffs was 15.7%. In March 2019, tariffs for the month increased more significantly than in January and February 2019 (1.2% versus 0.5% and 0.8%).

In general, in the first quarter of 2018 and 2019, tariffs for services increased almost equally (2.5% in 2019 and 2.6% in 2018).

Over the past three months from the beginning of the year, domestic services rose most significantly in February (3.5%), passenger transport - in January (0.9%), communications, cultural and educational institutions - in March (respectively 3.9%, 3.2% and 6.2%), recreation services - in January (4.2%), medical services - in February (1.1%).

Housing and communal services for this period have not undergone significant changes. Leading positions in price growth in March of the current year are taken by education services (6.2%), communications (3.9%) and cultural institutions (3.2%).

Taking into account the specific weight of each group of services, the leading positions were divided by education services (0.11 pp), communications (0.08 pp), household, housing and communal services and services of cultural institutions (0.02 pp .).

Delayed until 1 March 2019, the increase in the cost of education in higher educational institutions of the country by 10.0%, associated with an increase in the size of the minimum wage from 1 November 2018, added 0.11 pp to the first quarter inflation.

The reason for increase in tariffs for communication services was the increase from 1 March 2019 of tariffs for certain types of services of Uzbektelecom, established in accordance with the price list No. 125-1 / 1 “Limit Levels of Tariffs for Universal Telecommunications Services”.

The subscription fee for city telephone communication increased from 3,000 to 5,800 soums (1.9 times). From March 2019, among other observed types of services, ticket prices to the Tashkent zoo increased significantly (by an average of 56.3%).

Of the holiday services in March 2019, the services of sanatoriums and holiday homes became more expensive by 1.5% per month, hotel accommodation - by 1.4%, tourist services - by 0.6%. For January-March 2019, hotel accommodation has risen in price by 6.1%, stay in sanatoriums and rest houses - by 9.4%, tourist services - by 5.1%

From March 2018 to March 2019, housing and communal services (25.3%) and education services (23.1%) rose in price most significantly.

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