By the end of September, annual inflation in Uzbekistan stood at 10.46%, a figure that surpasses last year’s rate but is lower than the preceding three years. This upward trend is primarily driven by rising food prices and increasing costs for services and industrial goods, according to the latest report from the Statistics Agency.

Consumer prices increased by 1.23%, slightly lower than last year’s 1.24% but higher than the 1.03% recorded in 2022. Year-to-date inflation has reached 6.77%, up from 5.13% in the same period last year, yet down from 8.08% two years ago.

Food inflation remains a driver of overall price increases, with prices rising by 1.4% in September. Vegetables saw the sharpest price increases, with an 8.2% rise, while meat prices grew by 2.3%. Watermelons surged by 24%, cucumbers by 19.6%, and carrots by 15.6%. Conversely, fruits and nuts saw a 3% price decline for the month.

Over the past year, food prices have increased by 2.4%, with meat products and soft drinks showing the largest price growth at 9.8%. However, vegetables became 11.4% cheaper, and fruits and nuts declined by 3.2%. Cabbage prices almost halved, while garlic surged by 42%, pomegranates by 38%, and tomatoes by 37%.

Prices for industrial goods rose by 0.8%, contributing to an annual growth of 8.4%. The price increases for clothing, footwear, and furniture slowed compared to previous years, while household appliances and electronics saw monthly rises of 0.4%, with annual growth rates of 6.3% and 1.3%, respectively.

Medicines became more expensive, with prices rising 1.6% for the month and a steep annual increase of 23.8%. Propane prices spiked by 15.7% in September, reaching a 52.1% annual rise, while gasoline prices grew by 0.8% (13.3% annually), and methane saw a 0.5% increase (35.8% annually).

The services sector experienced a notable rise in prices, with a 1.5% increase for September and an annual rise of 28.7%. Catering services led the price hikes, increasing by 2.4% for the month (14.6% y/y), while hotel prices rose by 0.6% (18.1% annually).

Housing rental prices jumped by 5.5% in September, contributing to an annual increase of 12.4%. Transportation costs also rose, with train fares increasing by 0.5% (45.5% annually), car travel by 0.6% (13.7%), and air travel by 0.7% (8% annually).

In August, inflation reached 10.5% y/y and 0.53% m/m, nearly identical to July’s figures of 10.5% annually and 0.28% monthly.