Economic concerns: Consumer confidence index drops to a new minimum in Uzbekistan

Freedom Finance's research revealed that in May, the consumer confidence index fell to a record low.

In May, the confidence index dropped by 3.4 points to 126.8 points. The decline was observed across all five sub-indexes, marking the most significant reduction regarding economic dynamics in recent years.

The sub-index evaluating changes in the economic situation fell by 7.8 points to 117.5. While 58 percent of Uzbekistanis noted an improvement in the economic situation over the last 12 months in March, this figure decreased to just 53.5 percent in April, and to 48 percent in May.

Only one-third of the respondents living in Tashkent city gave a positive assessment of the economic dynamics. In the Namangan region, the proportion of positive responses dropped from 58.3 percent to 46.1 percent, while in another five regions, it fell by 7-9 percent.

The sub-index reflecting changes in the citizens' personal financial situation also decreased by 2.9 points to 128.4. A total of 56.9 percent of respondents indicated an improvement in their economic situation (compared to 57.6 percent a month earlier);

The inflation rate is rising. Throughout the year, significant price increases were felt by 48.5 percent of the population. This figure renewed the record set in October of last year. Monthly inflation reached 27.7 percent.

The portion of citizens who noted an increase in utility tariffs rose from 21.4 percent to 44.1 percent over two months. The products with the highest price increases included meat and poultry (45.6 percent), followed by medications (29.5 percent) in third place.

Only 13.2 percent of respondents expect inflation to accelerate in the coming month, anticipating a 28 percent annual rate.

63.4 percent of respondents expect a significant depreciation of the UZS against the dollar throughout the year.

According to Freedom Finance analysts, the decline in consumer confidence has been caused by the sharp acceleration of inflation due to administrative decisions adopted in Uzbekistan.

According to the Central Bank report, the perceived inflation rate by the population for May was 14 percent. The highest levels of inflation were felt in Tashkent city (17.4 percent) and Andijan region (16.2 percent), while the lowest levels were in the Republic of Karakalpakstan (10.2 percent) and Khorezm region (11 percent).

Earlier, it was reported that the annual growth rate of prices in the consumer sector in May was 10.6 percent. The difference between perceived and official inflation was 3.4 percent.