Inflation declines to 2.7% in January

Uganda’s annual headline inflation for the year ending January 2022 dropped to 2.7 percent, down from 2.9 percent recorded in December 2021, according to Uganda Bureau of Statistics (UBOS).

Mr Edgar Niyimpa, the principal statistician price statistics at UBOS revealed this while releasing the findings on Monday.

“This was mainly attributed to monthly transport inflation which declined by 5.3 percent in the month January 2022 compared to the 2.4 percent rise recorded in December 2021,” he said.

According to Mr Niyimpa, monthly inflation for alcoholic beverages, tobacco and narcotics decreased by 0.2 percent in January 2022 compared to the 1.4 percent rise recorded in December 2021.

He, however, noted that food and non-alcoholic beverages monthly inflation rose by 0.4 percent in January from the same rate registered in December 2021.

Mr Niyimpa noted that restaurants and accommodation services inflation increased by 1.0 percent in January 2022 compared to 0.8 percent drop recorded in December 2021.

Others are personal care, social protection and miscellaneous goods inflation rose by 1.3 percent in January 2022 compared to 0.5 percent rise in December 2021.

Clothing, footwear items rose

Clothing and footwear items rose by 1.7 percent for the 12 months to January 2022 up from 0.8 percent recorded in December 2021.

Footwear inflation increased to 2.4 percent for the 12 months to January 2022 up from 0.7 percent recorded in December 2021.

Housing, water, electricity, gas and other Fuels witnessed a 1.1 percent rise.

In addition annual furnishings, household equipment and routine household inflation increased to 7.3 percent in January 2022 up from 6.6 percent registered in December 2021.

Gulu District registered the highest inflation of 4.5 percent for the 12 months to January 2022 up from 3.4 percent recorded in December 2021.  This was driven by annual ‘housing, water, electricity, gas and other fuels inflation that increased to 5 percent in January 2022 up from minus 6 percent in December 2021.

Kampala recorded the lowest monthly inflation by income groups and geographical area by 1.0 percent in January 2022 down from 1.2 percent registered in December 2021.

The low inflation in Kampala was attributed to transport inflation that declined to minus 10.5 percent in January 2022 down from 0.4 percent recorded in December 2021.

Highest inflation        

Gulu District registered the highest inflation of 4.5 percent for the 12 months to January 2022 up from 3.4 percent recorded in December 2021. This was driven by annual ‘housing, water, electricity, gas and other fuels’ inflation that rose to 5 percent in January.