“Against the backdrop of high growth rates of household incomes, including remittances to the country, high growth rates of aggregate demand in the economy create the possibility of increasing inflationary pressure, taking into account certain interruptions in aggregate supply,” the report reads.

At the same time, the remaining risks associated with global economic activity and a possible recession will be depressing for external demand in the coming year.

In addition, the persistence of geopolitical tensions may lead to an increase in the “risk premium” for the country in external financial markets. These factors raise the risk of shrinking external financing opportunities amid tightening global financial conditions.

In such a situation, the effective use of domestic financial resources and the reduction of the overall fiscal deficit will minimize external impacts. In turn, the growing dynamics of core inflation and its increasing contribution to general inflation shows that inflationary pressure in the domestic economy is taking on a more long-term character.

“Inflationary factors and risks caused by external and internal economic conditions are carefully studied and appropriate measures are taken to eliminate them,” the Central Bank concluded.

Earlier, it was reported that Uzbekistan canceled the excise tax on AI-80 gasoline, and the price of gasoline would be decreased.

In addition, there are currently problems with gas supply in the republic, in particular at CNG filling stations. The authorities are sometimes forced to close CNG filling stations in order to redirect gas to the population.