Uganda’s Inflation declines further to 2.7%

The Annual Headline Inflation for the year ending September 2023 has slowed by 2.7% compared to a 3.5% decrease of August 2023.

This is on account of the declining Annual Core Inflation which has decelerated to 2.4% compared to 3.3% in August 2023.

The annual inflation for Rice, Mukene, Beans, soap, cassava, matooke, mangoes and maize flour all slowed down. Charcoal, Petrol and diesel inflation also slowed down on a year to year comparison according to the Director of Micro-economics statistics, Aliziki Khauda Lubega.

The monthly headline inflation increased by 0.7% from 0.6% registered in August 2023. Monthly core inflation also rose by 0.3% from 0.2% of August 2023. Monthly Diesel and Petrol inflation also rose on a monthly.

The highest inflation was recorded in Fort Portal at 5.1 % for the 12 months to September 2023 from 6.0% recorded in August 2023. Kampala High registered the least at 2.0 % for the 12 months to September 2023 compared to 2.5% recorded in August 2023.

The Bureau has also announced that the Annual Inflation as measured by the Residential property price Index for the 4 quarters to Q1 FY2023/24 was registered at 5.7% compared to -7.6% of Q4 FY2022/23. Kampala Central and Makindye , inflation rose to 19.2% for the year ending Q1 FY2023/24. Q4 was -15%.

During the release of the index, Principal Statistician , Edgar Niyimpa added that Residential Properties in ‘Kawempe and Rubaga’ and Nakawa registered 2.8% and 0.6% respectively for the year ending Q1 FY2023/24 compared to 3.9% and -6.35 registered in Q4 FY2022/23

Relatedly,the construction sector Inflation as measured by the Construction Input Price Index for the 12 months to August 2023 for inputs of the construction sector was registered at 1.8 percent compared 2.0 percent registered for the year ended July 2023.

According to Irene Musiitwa, from UBOS' Business and Industry Statistics division, the trend was as a result of inflation of inputs for specialised construction activities which entailed demolition and site repair in addition to other inputs like electrical, plumbing and other construction installation activities.