Uganda’s annual headline inflation rate has dropped to 4.0 per cent for the year ending November 2017 compared to 4.8 per cent registered in the year ended October. This is the lowest rate registered since October 2016
The decline signifies that the price at which goods and services have been rising were not as high as they were one year ago.
Releasing the Consumer Price Index (CPI) last week, Uganda Bureau of Statistics (Ubos) director of macroeconomics Chris. N. Mukiza said: “The drop is attributed to the annual Food Crops Inflation which declined to 2.3 per cent for the year ending November 2017, when compared to the 7.9 per cent recorded for the year ended October 2017.”
Dr Mukiza explained that the drivers for the lower annual food crops inflation were vegetables inflation that declined to 3.0 per cent and fruits inflation that dropped to 1.8 per cent for the year ending November 2017,
He added that the inflation for vegetables was 6.5 per cent while that of fruits was 9.7 per cent recorded for the year ended October 2017.
Both the headline inflation and the core inflation is below the central bank monetary policy of controlling Uganda’s inflation at 5 per cent, meaning that the Bank of Uganda has been effective with its monetary policy.