Bank of Uganda has reported drastic raise in Annual crop inflation in the last three month.
This comes at the time when many part of the country is experiencing drought which is likely to last until the end of this year.
While releasing the monitory policy statement for October 2016, the governor bank of Uganda Prof Emanuel Tumusiime Mutebire said that in the last month food inflation have jumped from -1.9% to 5.1%.
He explained that the major cause of this the drought that affected affecting planting season and subsequently harvest has been extremely poor.
He however said that the trend is likely to change if rains start in the near future.
Meanwhile annual headline and core inflation declined to 4.1% and 4.2% in September respectively from 4.8% and 5% in august prompting bank of Uganda to lower central bank rate to 13% from the previous 14%.
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