Uganda’s Construction Sector Inflation Rises by 1.2% Annually, Driven by Key Material Price Changes
The Uganda Bureau of Statistics (UBOS) has published the latest Construction Input Price Index (CIPI), revealing a 1.2% annual increase in construction sector inflation for the year ending in September 2024.
This marks a slight decrease from August’s rate of 1.5%. The CIPI reflects average price changes across essential construction materials, labor, and equipment, offering insight into trends within the construction industry.
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Irene N. Musiitwa, Senior Statistician at UBOS, outlined notable shifts within construction sub-sectors.
Building material costs rose by 2.2% in September, compared to 2.0% in August.
Civil engineering materials experienced a slight increase of 1.0%, down from 1.2% the previous month, while specialized construction activities saw a modest price rise of 0.4%, compared to August’s 1.1%.
“Construction prices fluctuate due to material types and market demand,” Musiitwa noted, adding that rising costs in roofing materials and timber were primary drivers.
Roofing sheets showed a 9.8% annual increase, up from 5.5% in August, and timber prices rose by 2.5%, up from 1.6% the month before. Clay bricks and tiles also saw a 0.2% price increase after a 0.4% decline in August.
Certain materials, however, experienced price reductions that helped ease inflationary pressure in the sector.
Diesel prices dropped by 1.6% annually, contrasting with August’s 2.6% increase. Lime also saw a substantial annual price decrease of 12.3%, down from a 20.5% drop previously recorded.
On a monthly basis, the CIPI rose slightly by 0.1% in September, following a 0.1% decrease in August. Modest increases in materials such as roofing sheets and concrete blocks contributed to the monthly index rise.
UBOS emphasizes the importance of these trends for industries reliant on construction materials.
“The CIPI provides essential insights into cost dynamics within the construction sector,” Musiitwa stated, stressing its value for planning and budgeting long-term projects.
