Inflation2

Uganda’s Inflation rises to 4.1%

By Edwin Muhumuza

The Annual Headline Inflation for the year ending March 2021 is recorded at 4.1 percent compared to the 3.8 percent registered for the year ended February 2021.

The increase in Annual Headline inflation is mainly attributed to the Annual Food Crops and Related Items Inflation that increased to minus 0.9 percent for the year ending March 2021 compared to minus 4.3 percent recorded for the year ended February 2021.

This rise was mainly driven by Annual Inflation for Vegetables that recorded 0.6 percent for the year ending March 2021 compared to minus 4.7 percent recorded in February 2021.

In particular, the Annual Inflation for Vegetables cultivated for their fruit, increased to 2.5 percent for the year ending March 2021 compared to the minus 12.6 percent recorded for the year ended February 2021.

In addition, Annual Fruits Inflation increased to minus 0.8 percent for the year ending March 2021 compared to minus 3.3 percent recorded for the year ended February 2021.

Juliet Nakayenga, a senior statistician at the Uganda Bureau of Statistics items like smoked Nile perch, green cabbages, water melon, eggplant and bitter tomatoes, pears, mangoes, peas, tomatoes ,fresh vegetables like bitter tomato (Nakati), Bugga, leafy vegetables (Dodo),Cassava flour, Pineapples, Passion fruits are part of those that have increased.

Among those that have reduced in prices include, citrus fruit, fresh okra , fresh beans, oranges, Bamboo shoots( Malewa), Angara fish, Carrots, Ginger, Avocadoes, and Maize grains.

Analysis by geographical areas and income groups reveal that Arua registered the highest Annual Inflation of 7.3 percent driven by Annual Inflation for Food and non-alcoholic beverages Inflation. In addition, Annual inflation for Housing, water, electricity, gas and other fuels increased to minus 3.3 percent.

The second highest Inflation was registered in the basket of Kampala High Income that registered an Inflation of 4.9 percent, driven by Annual Inflation for Food and non-alcoholic beverages Inflation. In addition inflation for Housing, water, electricity, gas and other fuels increased to minus 1.6 percent

The least Annual Inflation was registered in Gulu at 2.0 percent. The low inflation in the Centre was due to the Annual Transport Inflation that declined to 23.3 Percent for the year ending March 2021 compared to 26.3 percent registered for the year ended February 2021.

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