Uganda’s Inflation rises to 2.8%

Uganda’s Inflation has increased to 2.8 percent in January compared to 2.6 percent in December 2023.

This is largely attributed to the Annual Core inflation that registered 2.4 percent increase in January compared to 2.3 percent in December 2023.

The increase was due to Annual Passenger transport by taxi and hired car inflation that increased to 5.6 percent coupled with Annual Domestic flight charges which increased by 2.3 percent .

According to the Director Micro Economic Statistics, Aliziki Khauda Lubega, annual church wedding fees increased by 30.7 percent in January 2024 compared to 9.5 percent in December 2023 which also plaid a part in the services inflation.

Among the other goods Inflation increments, saw the prices of Cassava flour by minus 7.3 percent and Maize flour prices by minus 31.1 percent.

Annual Energy Fuel and Utilities (EFU) inflation increased to 7.4 percent in January compared to 6.4 percent in December due to the increase in the petrol prices, Firewood prices and Diesel prices.

Annual Food Crops and Related Items Inflation increased to 2.6 percent which was mainly attributed to Annual Vegetables, tubers, plantains, cooking bananas and pulses inflation, particularly, cooking bananas prices, Sweet Potatoes prices, Green cabbage prices and Green pepper prices.

Analysis by geographical areas and income groups revealed that Arua registered the highest inflation of 5.6 percent in January compared to 5.5 percent in December on account of ‘Food and non-alcoholic beverages’ inflation in addition to Housing, Water, Electricity, Gas and other fuels inflation.

The second highest Annual Inflation was registered in Fort portal Centre at 3.7 percent while the least annual inflation was registered in Kampala Middle Income at 1.6 percent in January compared to 1.1 percent in December mainly due to the annual ‘Transport’ inflation recorded at 0.5 percent in January compared to 2.3 percent in December 2023.