BAKU, Azerbaijan, November 13. Lower global oil prices could help ease inflation in Uzbekistan, including by reducing import costs, Koba Gvenetadze, IMF Resident Representative in Uzbekistan, said.
He made the remarks during the presentation of the regional economic outlook report "Caucasus and Central Asia Steering Through Uncertainty".
According to him, the impact of oil price movements on different economies depends on how freely domestic prices are set and how closely they are aligned with market forces.
Gvenetadze noted that lower oil prices could affect not only petrol and other fuel prices but also production costs for goods and services, creating conditions for lower inflation.
“If oil prices decline, as we are seeing at this point, there will most likely be an impact and downward pressure on inflation. This will also be reflected in import prices,” he said.
At the same time, the IMF representative stressed that oil and other commodity prices are not the only factors influencing inflation. Potential supply disruptions involving other goods and changes in domestic demand also play a role.
Commenting on monetary policy, Gvenetadze emphasized the importance of continued vigilance by the Central Bank of Uzbekistan. He said that maintaining tight monetary policy remains one of the key tools under the country's inflation-targeting framework, which the central bank is currently pursuing.
Regarding subsidies, he noted that countries can use them to support their economies, but such assistance should be targeted.
