Uganda’s inflation climbs to 7.9 percent

Uganda’s Inflation increased to 7.9 percent, up from 6.8 percent registered in June 2022.

This was mainly driven by the increase in prices of commodities under Core Inflation which increased to 6.3 percent in July up from 5.5 percent in June of the same year.

Increase in Annual Core inflation was attributed to Annual Other Goods Inflation that increased to 10.2 percent in July, up from 9.3 percent in June 2022.

Particularly, Cassava flour inflation increased to 62.3 percent in July from 31.2 percent in June and Maize flour inflation increased to 56.3 percent in July from 48.3 percent in June.

According to the Director of Economic Statistics, Aliziki Khauda Lubega, Maize flour specifically comes out as one of the major drivers since it is commonly used in homes and schools plus beans as well.

In addition Annual Services Inflation increased to 2.0 percent in July 2022 up from 1.1 percent registered in June 2022.

This was mainly due to the Annual Transport inflation that increased to 4.6 percent in July 2022 down from 1.7 percent in June 2022.

Specifically, Motorcycle fares inflation increased to 18.8 percent in July 2022 up from 3.2 percent in June 2022.

“We are seeing that motorcycles fares are increasing and this is also riving the inflation”

Annual Food Crops and Related Items Inflation increased to 16.4 percent in the year ending July 2022, up from 14.5 percent registered in the year ended June 2022.

This was due to annual ‘Vegetables, tubers, plantains, cooking bananas and pulses’ Inflation that increased to 23.7 percent in July 2022, up from 18.9 percent registered in June 2022.

Specifically, Matooke Inflation increased to 50.7 percent in July 2022, up from 32.5 percent registered in June 2022 and Beans Inflation increased to 18.2 percent in July 2022, up from 7.7 percent registered in June 2022.

Energy, Fuel and Utilities Inflation increased to 17.2 percent in the year ending July 2022, up from 14.2 percent registered in the year ended June 2022 mainly due to Annual Liquid Energy Fuels Inflation that increased to 53.0 percent in July up from 44.7 percent in June.

Specifically, Petrol Inflation increased to 56.1 percent in July 2022, up from 45.9 percent registered in June 2022.In addition, Annual National Water charges inflation increased to 5.8 percent in July 2022 up from 0.0 percent in June 2022.

Meanwhile in neighboring Kenya, annual inflation rate in Kenya increased to 8.9% , the highest reading since June of 2017, from 7.9% in June as a result of upward pressure from prices of food and non-alcoholic beverages namely carrots, maize, white rice and beans. Transport prices were up 7% and housing and utilities 5.6%.

Going South to Tanzania, their June figure stands at 4.4 percent and likely not to go past 5 percent while the annual inflation rate in Rwanda accelerated to 16.1 percent in June of 2022 from 14.8 percent in the previous month.