Inflation declines due to drop in transport fares
A conductor helps a passenger sanitise before entering a taxi in Kampala yesterday. PHOTO | STEPHEN OTAGE
Headline inflation declined to 1.9 per cent from 2.2 per cent in September, according to Uganda Bureau of Statistics (Ubos).
The decline comes at a time when there has been an increase in global commodity prices, which has tempted some central banks across the world to tighten monetary policies.
Bank of Uganda Governor Emmanuel Tumusiime Mutebile, recently told journalists that the risk of imported inflation from advanced economies could necessitate an early exit from accommodative monetary policies.
However, Ubos at the weekend indicated that local inflation had declined due in part, to a fall in transport inflation, which declined to 2.4 per cent.
Other declines, Ubos said, were registered among alcoholic beverages, tobacco and narcotics inflation, which dropped to 0.5 per cent and housing, water, electricity, gas and other fuels inflation, which fell to - 0.9 per cent.
However, Ubos said other goods inflation had during the period increased to 3 per cent up from 2.5 per cent in September.
During the period, core inflation slightly decreased to 2.1 per cent down from 2.2 per cent in September due to a decline in services inflation, which fell to 1.1 per cent down from 1.8 per cent in September.
However, other goods inflation under the core inflation category increased to 3 per cent in October up from 2.5 per cent in September.
Non-core inflation during the period fell to 0.8 per cent down from 1.8 per cent in September due to a decline in food crops and related items inflation, which fell to 1.7 per cent down from 3.2 per cent in September.
The decline was majorly due to fruits and nuts inflation, which decreased to -3.5 per cent down from 0.3 per cent.
During the period, energy fuel and utilities inflation fell to -0.2 per cent down from 0.2 per cent in September due to solid fuels inflation, which decreased to -7.9 per cent down from -4 per cent in September.
Annual goods and services inflation, during the period, remained stable at 2.4 per cent while semi-durable goods inflation increased to 2.6 per cent up from 1.8 per cent in September.
At 2.6 per cent, Aura registered the highest inflation followed by Kampala at 2.6 per cent due to an increase in food and non-alcoholic beverages and clothing and footwear inflation, respectively.
