Annual inflation in Uzbekistan slows to 7.2 percent

According to the regulator, the slowdown is primarily attributed to the stabilizing effects of the 2024 energy price liberalization finally phasing out. The data indicates a steadying market, with the majority of goods and services now seeing annual price increases of less than 10%.

Breakdown of price dynamics

The analysis shows that between January 2025 and January 2026, food products rose by 5.5% and non-food items by 5.2%. However, the services sector experienced a much sharper climb, with prices increasing by 13.5% on an annual basis.

The Central Bank noted that price growth remained relatively modest across the consumer basket:

• Food products: 147 out of 167 types (88%) saw price hikes below 10%.
• Non-food products: 232 out of 252 types (92%) stayed within the sub-10% growth range.
• Services: 66 out of 98 types (67%) saw increases of less than 10%.

Notable price decreases

Despite the general inflationary trend, several essential goods became more affordable over the past year. In the food sector, pumpkin prices plummeted by 57.9%, followed by eggplant (–30.5%), watermelon (–27.9%), peaches (–24.5%), and garlic (–21.1%).

In the non-food category, prices for large kitchen appliances dropped by 2.9%, while small household appliances and A4 paper saw marginal decreases of 1% and 0.9%, respectively.

The service sector also saw some reductions; the cost of money transfers fell by 7.5%, and tuition at private universities decreased slightly by 0.5%. Notably, metro fares and landline communication costs remained unchanged.

Sectors experiencing sharp increases

The report highlights several outliers where prices spiked well above the average. In the food category, lemons saw the highest surge at 90.8%. Meat products also weighed heavily on the inflation index, with mutton prices rising by 27.2%, boneless beef by 25%, and beef with bones by 23.8%. Recent data suggests that meat products alone account for 13% of the overall inflation rate.

Among non-food items, wedding rings saw the highest increase at 32.6%, followed by methane gas at 30.2%.

The service sector recorded some of the most dramatic shifts. Car insurance premiums surged by a record 281.8%, while trolleybus fares doubled, marking a 100% increase. Additionally, domestic airfare rose by 55.9%, driving courses by 48.5%, and natural gas by 39.2%. Utility costs also trended upward, with cold water prices increasing by 35.1% and electricity by 8.8%.

The Central Bank remains optimistic for the remainder of the year, forecasting that the annual inflation rate will continue to decline, reaching a target of 6.5% by the end of 2026.