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Increase in prices of services, food push up inflation
During the period, Ubos recorded a slight reduction in fuel prices. Photo / File
What you need to know:
- This is the highest inflation rate since July 2023 when it stood at 3.9 percent
Inflation has risen to 4 percent for both core and headline driven by a faster rate of price increase in the mix of services and food items.
Computed consumer price index data released by the Uganda Bureau of Statistics (Ubos) yesterday indicates that during the month ended July, most services and goods registered an increase in price charges.
This is the highest inflation rate since July 2023 when it stood at 3.9 percent.
While releasing the consumer price index for July, Ubos director of economic statistics Aliziki K. Lubega, said services inflation had increased to 6.5 percent from 6.1 percent, while passenger transport inflation, comprising taxi and flights, had risen to 8.2 percent.
Accommodation services inflation increased to 8.2 percent from 7 percent, while cultural services inflation rose to 8.4 percent from 5.7 percent in June.
Ubos also indicated that annual food crops and related items inflation had risen driven by increase in the prices of irish potato, which rose to 17.2 percent and green cabbage prices, which increased to 32.5 percent from 14.4 percent in June.
Other items that also contributed to increased inflation were secondhand vehicle price changes, which rose by - 0.7 percent, refined oil price changes of - 3.4 percent, and corrugated iron sheets price changes of - 7.2 percent.
Ms Lubega also indicated that cooking banana prices rose by 3.6 percent from -10.4 percent, while dry beans increased by - 5.2 percent. However, annual energy fuel and utilities inflation, dropped to 6.2 percent from 10.3 percent, indicating slower price increases for fuel products and utilities.
Kampala High Income registered the highest inflation of 5.4 percent, followed by Fortportal at 4.1 percent from 3.9 percent, while Mbale registered the lowest increase in the rate of prices of 1.9 percent.
Mr Corti Paul Lakuma, a senior researcher at the Economic Policy Research Centre, said yesterday the movement in inflation is an “indicator that prices are rising much faster than they were at this time last year.
