Annual Inflation in Uganda Falls to 2.9% as Consumer Price Trends Shift
The Uganda Bureau of Statistics (UBOS) reports that annual inflation has decreased to 2.9%, down from 3.0% the previous year, according to the latest Consumer Price Index (CPI) data.
This change highlights shifting economic conditions that affect consumers and businesses nationwide.
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Samuel Echoku, UBOS Head of Macroeconomic Statistics, noted that the primary factor behind this decline is a decrease in food crop prices, with the food-related inflation rate at -5.3%.
“The drop is due to significant price reductions in staples like cooking bananas, tomatoes, and beans,” Echoku explained.
Cooking bananas saw an 8.0% price decline, tomatoes fell by 14.2%, and beans dropped by 4.4%, while Irish potato prices rose 11.8%, slowing from a prior increase of 26.0%.
The energy sector also reflected changes, with annual Energy, Fuel, and Utilities (EFU) inflation down to 3.3% from 4.5%.
pointed out that “the reduction in liquid energy fuels, with inflation at -5.4%, was mainly driven by lower petrol and diesel prices, which dropped by 5.9% and 7.5% respectively.”
However, solid fuels saw a 15.5% inflation increase, due to a 17.0% rise in charcoal prices.
In services, accommodation costs rose to 5.7% from 5.0%, and passenger transport inflation by road increased slightly to 3.8%.
Core inflation, excluding food and energy prices, remained steady at 2.1%.
“These statistics demonstrate the evolving nature of Uganda’s economy and the need to continuously monitor inflation trends,” Echoku emphasized, urging stakeholders to use this data for strategic decision-making and policy planning.
