General Theory
A sustained increase in the general price level.
Inflation.
The most common index used to measure the cost of living.
CPI (Consumer Price Index)
The inverse relationship between inflation and this variable.
Unemployment.
The primary institution responsible for controlling inflation.
Central Bank.
Uzbekistan's official annual inflation rate in 2025.
7.3%.
The effect of inflation on the purchasing power of money.
It decreases.
Inflation measure that excludes volatile food and energy prices.
Core inflation.
The economist who discovered this relationship in 1958.
Alban William Phillips
The action taken by a Central Bank to reduce high inflation.
Raising interest rates.
The medium-term inflation target for the Central Bank of Uzbekistan.
5%.
Inflation caused by an increase in production costs like oil or wages.
Cost-push inflation.
The index used to track price changes at the wholesale/producer level.
PPI (Producer Price Index)
The acronym for the "Natural Rate" of unemployment.
NAIRU (Non-Accelerating Inflation Rate of Unemployment)
The framework where a bank commits to a specific inflation percentage.
Inflation Targeting.
The current Key Policy Rate of Uzbekistan (as of 2025-26).
14%.
A situation with high inflation, slow growth, and high unemployment.
Stagflation.
The formula: (Nominal GDP / Real GDP) x times 100.
GDP Deflator.
The shape of the Long-Run Phillips Curve (LRPC).
Vertical.
The specific effect where nominal rates adjust to expected inflation.
The Fisher Effect.
The percentage of currency appreciation (Sum) in 2025.
6.9%.
The technical term for the costs of changing price lists during inflation.
Menu costs.
The specific index formula used by the GDP Deflator to reduce bias.
Fisher Ideal Index.
The curve's geometric property that makes overheating dangerous.
Convexity
The situation where inflation is caused by expectations of future inflation.
Built-in inflation.
The sector that showed the highest price pressure (+13.9%) in 2025.
Services.