The Central Bank has warned residents of the country about a possible increase in prices for certain types of food.
According to the regulator’s data, the growth of food prices amounted to 13.8% in annual terms and retains an increased impact on the overall inflation rate.
“The high growth rates of prices for essential consumer goods are explained by the situation in foreign markets, which is influenced by crop yields and logistics, as well as limited competition and supply in the domestic market,” the statement said.
The rise in prices for non-food products and services amounted to 8.8% and 8.4%, respectively, and these groups have a downward impact on overall inflation.
“A significant increase in prices for some basic food products in the short term is explained, on the one hand, by a low harvest and an increase in prices in foreign markets due to restrictions imposed by some countries on food exports, on the other hand, by a high concentration of imports of these products, underdeveloped competitive environment and relatively high cost of locally produced products,” the bank said.
According to the Central Bank, in the face of growing risks of rising food prices, the development of a unified state strategy to ensure the country’s food security, reforms to diversify import markets, decreasing import concentration and reducing transport costs will give positive results in ensuring price stability in the domestic market.
In addition, the stabilization of food prices will be served by systematic work to increase the production of fruits, vegetables and fodder crops, as well as the allocation of land and water resources necessary for growing these products.