The Central Bank has projected a continued deceleration in inflation rates to a 5 percent average by the end of 2023.
While releasing the April 2023 Monetary Policy statement, the Deputy Governor Bank of Uganda, Michael Ating Ego noted that the decline is being influenced by the low energy and food prices and improved global supply chains among others.
While the economic conditions are still turbulent for business performance, the Central Bank says that inflation is expected to continue decelerating due to factors like the improved low energy prices in the country.
According to the Deputy Governor Central Bank Dr Micheal Atingi ego, Inflation dropped to 9 and 7.6percent in March 2023 from 9.2 and 7.8percent in February 2023 respectively.
However, economic growth remained on the recovery path averaging 6.8% in the first two quarters of the financial year 2022/23 supported by a strong recovery in services and agriculture output.
"We as a country are on the recovery path because of factors like the improved energy prices and improved global supply chains and low food crop prices," Dr Atingi said.
An Economist at the Bank of Uganda, Twinemanzi Tumubweine noted a heightened volatility in the global financial markets for the period in review, which was linked to the challenges in the USA and Swiss banking systems.
