Uganda's Inflation back to single-digit

In Summary
  • Soap inflation registered 21.6 percent compared to 51.4 percent while the annual food crops and related items inflation was registered at 27.4 percent up from 27.6 percent mainly due to reduction in prices of Matooke, Bogoya, Green Pepper
  • However,Transport Inflation registered 5.4 percent compared to minus 4.9 percent in January on account of the increases in prices of second-hand vehicles, maintenance of personal cars which includes prices of lubricants, spare parts among other items.
Director of Micro economics statistics, Aliziki Khauda
Image: Courtesy

Uganda’s inflation has been recorded at 9.2 % in February compared to 10.5 percent- double digit, in January.

This was mainly due to the decrease in annual core inflation that registered 7.8 percent in February compared to 9 percent in January.

The annual core inflation was mainly attributed to the decrease in annual other goods inflation pointing the annual maize flour inflation that registered 53.3 percent in February compared to 90.8 percent in January.

In addition, Soap inflation registered 21.6 percent compared to 51.4 percent while the annual food crops and related items inflation was registered at 27.4 percent up from 27.6 percent mainly due to reduction in prices of Matooke, Bogoya, Green Pepper.

This is according to the Director of micro economics statistics Aliziki Khauda, while announcing the Consumer Price Indices and inflation at the Uganda Bureau of Statistics.(UBOS)

 The annual energy fuel and utilities(EFU) inflation was registered at 5.2 percent in February compared to 7.6 percent in January and this was mainly due to liquid energy fuels inflation that registered 9.1 percent from 14.8 percent in that same period. In addition, charcoal inflation registered 1.2 percent from 14.3 percent.

According to the Classification of Individual Consumption According to Purpose (COICOP) the main drivers to the registered inflation were commodities under the food and non-alcoholic beverages whose inflation registered 20.9 percent in February compared to 22.9 percent in January.

Others were furnishings, household equipment and routine household items.

Uganda's Statistics House,in Kampala City
Image: Courtesy

Relatedly, housing, water, electricity, gas and other fuels decreased to 5.0 percent, restaurants and accommodation services at 6.6 percent compared to 6.9 percent in the same period.

However, there was an increase in price of commodities under personal care, social protection and Miscellaneous Goods whose inflation was registered at 8.3 percent.

Surprisingly, Transport Inflation registered 5.4 percent compared to minus 4.9 percent in January on account of the increases in prices of second-hand vehicles, maintenance of personal cars which includes prices of lubricants, spare parts among other items.

In regard to global inflation and how Uganda fairs, the Executive Director, UBOS, Chris Mukiza revealed that it was already happening prior to the Russia-Ukraine war, on the back of quantitative easing in Europe and monetary expansion and so the crisis was a trigger the hyper-inflation.