Wednesday July 2 2014

Food harvest season brings down June inflation



June Inflation declined to 4.9 per cent down from 5.4 per cent last month, as the harvest season of various food commodities started.
According to the Uganda Bureau of Statistics (UBOS), the inflation drop was influenced by the annual food inflation that decreased to 7.1 per cent for the year ending June 2014, down from 8 per cent in May.
Matooke, Irish potatoes, sweet potatoes tomatoes and onions, beans groundnuts, rice and milk were cheaper in June and accessible in various parts of the country.
“Beginning April, we usually have seasonal harvesting of food crops that is why inflation has gone down,” said Mr Vincent Nsubuga Musoke, a principal statistician at UBOS, during the release of the Consumer Price Index (CPI) on Monday.
Further more, the prices of other non-food commodities also went down in most centres, namely clothing, foot wear, charcoal, Kerosene and petrol.

Increase in non-food prices
However, a monthly increase in the non-food category prices was recorded, mainly with firewood, education charges, beverages and tobacco.
Despite the general decline in the monthly inflation, financial year 2013/2014 registered an average 6.7 per cent annual headline inflation compared to 5.6 per cent recorded last in the 2012/2013 financial.
In an interview, Mr Sam Kaisiromwe, a senior statistician, said although the government was not able to maintain the inflation within five per cent, 6.7 per cent is still good.
He said: “The important thing is that 6.7 per cent is still a single digit, meaning the inflation in the financial year 2013/2014 was within manageable range. So this is not bad.”

High annual inflation
Masaka District registered the highest annual inflation of 6.3 per cent. The increase in the Masaka inflation was mainly driven by high price levels for food, charcoal, metered water and medical services. Kampala’s middle and low income also registered the second highest annual inflation stemming from high medical services and food prices.