UBOS: Inflation down despite rising fuel prices
Despite the rocketing fuel prices in Uganda since December 2017 to date, the inflation rate has not gone up according to a monthly assessment report released by the Uganda Bureau of Statistics (UBOS) on Wednesday.
While releasing the consumer price index for the month of February, Vincent Musoke, the principal statistician at UBOS said fuel formed the smallest portion of things that lead to inflation because it’s a very few people in Uganda with cars.
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However, the annual energy, fuel and utilities inflation increased to 11.2% for the year ending February 2018 compared to the 9.8% that was recorded in January.
Musoke said the drivers for the increase was the increased charcoal and firewood prices which have been recorded at 20.4% from the 17.1%that was recorded from the year ending January.
"It has been very dry and it’s not easy to burn charcoal in such a season and this explains why charcoal and firewood prices have gone up” Musoke said.
Generally, the month of February recorded a decline in the annual headline inflation of 2.1% from the 3.0% that was registered in the month of January.
Chris Mukiza the director micro economics at UBOS said the drivers for the reduction were largely because there was a decline in sugar prices and other goods.
"Arua registered the highest annual inflation of 5.3% for the year ending February 2018 compared to the 4.2% recorded in January which was mainly driven by the increased electricity ,gas and other fuels," Mukiza said.
