Prices for grade 1 flour last month rose 4.6 percent, according to the Monthly Inflation Review released by the National Bank of Tajikistan (NBT).
The NBT analysts say the price hike has resulted from the rising cost of flour in the countries, which provide the bulk of Tajikistan's flour imports.
Increase in the rate of value added tax (VAT) from 10 percent to 18 percent has also affected the flour prices in the country, the NBT report says.
Moreover, Tajikistan last year reduced production of wheat by 14.6 percent compared to 2017 that has also led to rise in flour prices.
At the same time, Tajik central bank notes that the rise in flour prices is of seasonal nature. A bumper crop of wheat is expected both in Tajikistan and in Kazakhstan, which provides the bulk of Tajikistan’s flour imports, this year, according to the Tajik central bank’s report.
Meanwhile, the Agency for Statistics under the President of Tajikistan says the price for one kilogram of grade 1 wheat flour rose in Tajikistan from 3.43 somoni on December 31, 2018 to 3.59 somoni on January 31, 2019.
Last month, Tajikistan reportedly imported 728,000 USD worth of 3,075 tons of wheat flour, which was 16.5 percent more by weight and 28.4 percent more by cost than in the same period last year.
Over the same period, Tajikistan imported 16.2 million USD worth of 89,500 tons of wheat, which was2.3 percent more by weight and 8.4 percent more by cost than in January 2018.
