Inflation in Uganda witnessed a marginal uptick, reaching 2.6% in November 2023, according to data released by the Uganda Bureau of Statistics (UBOS).
The year-on-year comparison reveals a slight increase from the 2.4% recorded in October 2023, signalling potential shifts in consumer behaviours.
UBOS Director of Macroeconomics Statistics, Aliziki Kaudha Lubega, emphasized that the rise is primarily attributable to escalated prices in services such as child delivery, international flights, energy, fuel, and utilities.
However, a closer look at the data reveals interesting dynamics.
Over the 12 months leading to November 2023, there was a notable slowdown in inflation for food crops and related items, clocking in at 6.4%.
This suggests a positive trend in the agricultural sector, contributing to stabilized prices in this category.
Lubega pointed out the monthly fluctuations, stating that the overall price increase was 0.2%, a significant drop from the 0.6% registered in October. Even with the price of petrol climbing by 1.9% to an average of 5,568 shillings per litre, diesel experienced a surprising reduction from 5,153 shillings in October to 5,075 shillings in November.
Geographical analysis revealed varying inflation rates, with Fort Portal leading at 5.9%, followed by Jinja at 4.0%, and Kampala Middle registering the lowest at 1.3% for the 12 months to November. UBOS attributes these regional disparities to a multitude of factors.
Lubega emphasized that these inflation figures should influence consumer behaviours and purchasing decisions. Consumers are urged to explore substitutes for products experiencing price hikes, opting for those with lower price tags.
Despite this modest increase, Uganda's inflation remains one of the lowest in the region.
With headline and core inflation at 2.6% and 2.0%, respectively, the nation continues to outperform the 5.0% macroeconomic target set by the central bank.
As these economic indicators continue to shape the financial landscape, analysts anticipate a nuanced impact on consumer choices and market dynamics in the coming months.