Inflation hits 6.3 percent mark

Ugandans have been urged to brace for hard times as commodity prices continue to soar pushing inflation figures beyond the Central Bank target of five percent.

Latest information from the Uganda Bureau Of Statistics (UBOS) has indicated that inflation stands at 6.3 percent from the 4.9 percent that was recorded in April this year.

Commodity prices countrywide have been rising at a fast rate since January, forcing Ugandans to adjust their budgets to be able to afford the necessities.

However this seems not to be working out as consumers have to dig a little more deep into their pockets to buy some of essential goods, whose prices are weighing on the economy’s economic recovery.

The talk has for the last four months been on fuel, soap and cooking oil but today, tomato prices have increased by 46 percent while that of whole grain maize has increased by 17 percent.

Pumpkins prices have also increased by 12 percent and Dry beans increased by 10 percent.

This has pushed inflation to the current 6.3 percent for the month ending May.

According to officials at UBOS, The 6.3 percent inflation figure has been further driven by the high transport cost which increased by 4.4 percent.

The increase in transport costs has been attributed to the high petrol prices which has forced players in the transport to hike charges.

Aliziki Lubega, who is a director of Economic Statistics told this website that, “Food needs to be moved from one place to other yet the price of diesel continues to raise, this explains the scarcity and hiked prices.“

Officials said that inflation has been further high amongst non-durable goods standing at 10.9 percent from the 8.2 percent which was recorded in April.

Statistics have shown that inflation has been highest in at 8.5 percent from 5.7 percent followed by Gulu at 8.4 percent and Kampala at 5.1 percent.

“Most of these inflation figures in the different geographical location has been driven by annual food and non-alcoholic beverages and annual transport inflation,” Aliziki added.

Owing to this hike, the trading fraternity in Kampala under their umbrella body of Kampala City Traders Association (KACITA) have called have called on government to adopt usage of import quotas, reduce the taxes on fuel among other measures.

“Ggoobi (permanent secretary in the Finance ministry) should show us the economics that works, the time to show us this is now, after all they are not considering our proposals,” Isa Sekitto who is the KACITA spokesperson said.

The traders added that the government cannot keep giving excuses to Ugandans as they are pushed to the edge.

"Government can still use import quotas, this worked during the time when Amelia Kyambadde was still Minister of Trade it worked on the sugar prices as they were reduced from shs 10,000 to at least shs 5000,” Sekitto added

As the central bank target of 5 percent has been surpassed by 1.3 percent in a space of just one month assurance has been given to keep this single digit.