Uganda's inflation reduces to 6.2 percent

Uganda’s Inflation has been registered at 6.2 percent compared to 8.0 percent last month.

The slowdown in the annual inflation is largely attributed to annual core inflation which slowed down, with the main drivers, being Maize flour, rice, and cassava flour and laundry soap.

While announcing the Consumer Price Indices, the Uganda Bureau of Statistics disclosed that the annual core inflation slowed down to 5.6 percent in the year ending May 2023 compared to 6.8 percent in April 2023.

The main driver to the annual core inflation was the annual goods inflation that registered at 7.4 percent in May compared to 8.8 percent in April.

According to senior statistician Magoma Godfrey, annual services inflation also declined to 3.4 percent to 4.4 percent which was attributed to annual transport inflation that decelerated to negative 0.3 percent compared to 3.9 percent in April 2023.

The other driver to the slowdown in the annual inflation was that the annual food crops and related items inflation was registered at 15.7 percent in the year ending May 2023 compared to 25.3 percent registered in the year ended April 2023.

This was attributed to Tomatoes inflation that registered negative 26.2 percent in May compared to 26.3 percent in April.

Relatedly, cooking bananas were registered at 46.3 percent compared to 62.9 percent in April, sweet potatoes at 1.9 percent compared to 34.8 percent in April and Beans inflation that registered at 40.1 percent in May compared to 45.1 percent in April.

Energy Fuel and Utilities

The Annual Energy Fuel and Utilities inflation slowed down to 0.9 percent in May 2023 compared to 2.1 percent in April 2023

This was mainly due to a reduction in prices of liquid energy fuel prices that registered negative 4.4 percent in May compared to 2.1 percent in April 2023.

Diesel registered negative 9.0 percent compared to 7.3 percent in addition to Petrol prices that registered a negative 7.0 percent compared to 2.9 percent.