Food, related items prices rise by 10 percent average

According to data contained in the Ubos Consumer Price Index for October Ubos, retail prices for selected goods rose by an average of 10 percent with pineapples and matooke recording the highest increases. 

During the period, for instance, pineapple prices rose by 11.2 percent, increasing to an average of Shs1,422 up from Shs1,279 per kilogramme. 

A kilogramme of smoked tilapia rose from an average of Shs30,437 to Shs32,541, which represented a percentage increase of 6.9 percent, while laundry soap increased by 5.6 percent from Shs3,610 to Shs3,813. 

Maize flour, which is one of the key food items consumed in central north and eastern, registered an increase of 2.6 percent from Shs1,922 in September to Shs1,966 in October.  

Food prices have largely been stable for the last 18 months, helping Bank of Uganda to keep inflationary pressures within target, amid a number of Covid-19 related disruptions. 

However, with the economy now starting to show signs of recovery, price increases have been recorded among a number of commodities and services with food items recording to the highest increases.

According to details contained in the Stanbic Purchasing Managers’ Index, which measures monthly performance of the economy, procurement managers reported increases in purchasing prices of certain goods, some of which have also been highlighted by Ubos. 

For instance, according to Ubos, price increases were reported for clothing and footwear, which rose by 2.2 per cent in October. 

Furnishings, household equipment and routine household also registered a 3.9 percent price increase while non-alcoholic beverages prices rose by 3.1 per cent.      

Charcoal prices, which is the dominant cooking aide in urban centres, rose by 1.9 percent, with a kilogramme going for an average of Shs972. 

However, the increases were not sufficient to affect the general outlook in inflation, which during October, reduced to 1.9 percent, which stands far below the 5 percent Bank of Uganda target. 

Bank of Uganda, in its State of Economy report for September, said that whereas inflation had remained stable and below the 5 per cent target, there was a possibility of a surge due to vulnerability resulting from Covid-19. 

Movement in prices                

Commodity   and %age price increase 
Pineapples 11.2 percent  
Bananas 10.6 percent                                   
Whole cassava 9 per cent           
Smoked tilapia  6.9 percent                       
Sweet potatoes   5.6 per cent           
Laundry soap 5.6 percent                      
Maize flour 2.6 percent
Charcoal 1.9 percent
Cassava flour 1.9 percent