By Edwin Muhumuza
Annual Headline Inflation for August 2020 has declined to 4.6% compared to 4.7% in July 2020.
It is largely due to Annual Energy Fuel Utilities (EFU) Inflation that decreased to 4.3% in August compared to 6.6% in July 2020.
According to the director of Macro economic statistics at the Uganda Bureau of Statistics, Aliziki Khauda , while highlighting the trends of Inflation across the country, on the different products, the decrease in EFU inflation was due to solid Fuels Inflation that decreased to 13.4% in August compared 20.6 % in July 2020.
Annual Energy, Fuels and Utilities (EFU) Inflation declined to 4.3% in August and this covers charcoal Inflation which individually declined to 13.6% in August compared to 20.9% in July.
The Annual Food Crops and related Items Inflation increased to -5.4% in August compared to -5.5% in July, while In that same period, fruit prices increased to -12.3% in August, and -12.6% in July.
On a month to month basis, those that have recorded a rise in prices include, Malewa, Matooke(bananas), mangoes, green pepper, cassava dry, chicken, fresh beans, milk, whole cassava and milk while those whose prices have reduced include, peas, okra, onions, maize flour and whole grain maize, according to the Uganda Bureau of Statistics.
The highest inflation was registered amongst the Kampala Middle income people, with 5.5% inflation in August compared to the 4.8% registered in July. Jinja and Masaka inflation was registered at 5.4% in August compared to 5.2% in July while Fort Portal registered 3.1%
The Monthly Headline Inflation for August 2020 rose by 0.3% compared to 0.1% rise recorded in July 2020, due to the Food Crops and Related Items Inflation that rose by 1.2% in August 2020, compared to minus 4.9% in July 2020.
Monthly Fruits Inflation increased by 4.6% in August 2020, compared to 3.7% drop for July. The Monthly Energy Fuel and Utilities Inflation dropped by 0.3% in August 2020 from the 1.0% drop recorded in July 2020. Monthly Core Inflation increased by 0.2% in Aug 2020, July was 0.9%.
It is worth noting that with the advent of the rainy season, food stuff prices like vegetables and Matooke have gone up while Maize and onion prices have reduced due to the bumper harvest according to Nakayenga Juliet, a statistician at the Bureau.