In the coming months, as the pandemic-related situation changes, the prices of medicines, medical services and basic foodstuffs may rise sharply. The CB called on the government to take measures to prevent this.
The money market regulator also noted the need to reduce the impact of quarantine-related restrictions on prices in the areas of public catering, transportation and delivery services.
This is stated in the official commentary on the decisions taken at the meeting of the CB Board on July 29.
The CB release notes that despite the increase in imports of meat products and cattle, the growth dynamics of meat prices in domestic markets will be maintained. This requires systematic work to form a stable supply of these products by increasing the necessary fodder base for livestock in the regions and increasing local production.
It was noted that at the end of June 2021, the annual inflation rate was 10.9%, as observed in May, and it has remained almost unchanged for the last 4-5 months.
Inflation expectations for the next 12 months were 16.3%, up 0.8 percentage points from March, according to a June poll. The fact that both inflation and inflation expectations remain high and their impact on changes in the prices of basic foodstuffs can exacerbate the inflationary situation.
The central bank left the inflation forecast for 2021 unchanged at 9-10%. The base rate was also maintained at 14% per annum.
Earlier, the Central Bank raised the forecast for real GDP growth in Uzbekistan from 4.5-5.5% to 5.8-6.8%.
