The annual headline inflation rate for Uganda, which takes into account items in the Consumer Price Index (CPI), dropped to 3.9% from 4.9% the year before, according to the Uganda Bureau of Statistics (Ubos).
Both the yearly headline inflation and the annual core inflation are now below the Bank of Uganda’s (BoU) policy aim of keeping inflation in Uganda under 5%.
Uganda has recorded the lowest inflation rate in the past 15 months because of falling commodity prices, particularly those of food and petrol, with food making up 60% and energy and gasoline 20% of the inflation calculation.
The Director of Economic Statistics at Ubos, Ms. Aliziki Kaudha Lubega, while presenting the Consumer Price Index for the year ending July in Kampala, stated that the main factors contributing to the decline in inflation were maize flour, cassava flour, rice, and live chicken prices, all of which had decreased. She said that food crops and associated products inflation, which rose by 9.3% in the year ending July 2023 compared to 12.3% in the year ending June 2023, was the other factor in the slowing in annual inflation.
She also mentioned that the rate of services inflation dropped from 3.3% to 2.5% in the year ending July 2023.
According to Aliziki, this attributed to annual passenger transport services inflation that decelerated to negative 7.0 percent in the year ending July 2023 compared to negative 3.9 percent registered in June 2023.
