Prime
Inflation slightly increases, remains below BoU target
Whereas there has been an increase in inflationary pressures, inflation has remained below the Bank of Uganda target of 5 percent. Photo / File
What you need to know:
- Data from Uganda Bureau of Statistics (Ubos) shows that inflation for the year ended June 2024 stood at 3.8 percent compared to 8.8 percent in the same period in 2023
Continuous recovery from Covid-19-related disruption and a drop in prices of goods and services has seen Uganda register lower inflation for the year ended June 2024 compared to the same period in 2023.
Data from Uganda Bureau of Statistics (Ubos) shows that inflation for the year ended June 2024 stood at 3.8 percent compared to 8.8 percent in 2023.
The drop means that the economy experienced relatively lower prices than two years ago when many Ugandans were subjected to high product and service prices.
While releasing the consumer price index in Kampala, Mr Edgar M Niyimpa, the Ubos price statistics principal statistician, said inflation slightly rose to 3.8 percent in June from 3.7 percent in May due to an increase in prices of goods and services.
Annual other goods inflation rose to 2 percent from 1.8 percent due to an increase in tilapia fish fresh prices, which rose by 8.7 percent from 3.8 percent.
Laundry bar soap prices rose by - 4.6 percent from - 7.6 percent, while services inflation decreased slightly to 6.1 percent from 6.2 percent.
Ubos also indicated that annual food crops and related items inflation rose to 0.5 percent from - 1.4 percent due to a surge in cooking bananas from - 10.4 percent to 16.3 percent, while dry bean prices rose to - 7.2 percent from - 10.7 percent in May. Pumpkin prices increased to - 0.1 percent from - 21 percent, while sweet potatos rose to - 7.3 percent from - 12.3 percent.
Annual energy fuel and utilities inflation increased to 10.3 percent, driven by an increase in solid fuels inflation to 21.1 percent from 13.8 percent.
Specifically, firewood prices increased by 23.7 percent from 13.8 percent, while liquid energy fuels inflation rose to 5.3 percent from 4.8 percent, mainly due to an increase in petrol prices, which rose by 9 percent from 8.1 percent. Diesel prices increased by 2 percent from 1.1 percent.
