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Inflation on the rise - Ubos

A woman prepares fruits for sale in Kalerwe Market. PHOTO/MICHAEL KAKUMIRIZI        

What you need to know:

  • Inflation was higher in the Kampala High Income Group, which rose to 4.8 percent due to an increase in transport fares and insurance and financial services costs, followed by Masaka Centre (4.1 percent) and Mbarara at 4.11 percent.

A rise in prices of commodities across Uganda continues to impact inflationary pressures, signalling a growth in household expenditure, according to Uganda Bureau of Statistics (Ubos).

Data from Ubos indicates that during January both inflation heads rose, with headline inflation, which measures the movement of food and energy prices, increasing to 3.6 percent from 3.3 percent, while core inflation – which measures aggregate price growth excluding food and energy, rose to 4.2 percent from 3.9 percent.

The increase, Ubos indicates, is being driven by a mixture of rising commodity prices due to seasonal factors and services charges, which impacts the poor more than the rich.

Ubos head of macroeconomic statistics Samuel Echoku, while releasing the consumer price index at the weekend, said inflation had largely increased due to a rise in smoked tilapia prices by 17.8 percent and new clothing prices by 6.2 percent from 3.9 percent in December.

Other price increases were recorded for sugar and laundry bar soap.

Services inflation also rose by 6.3 percent due to passenger transport inflation, which increased by 2.1 percent and hotel and lodging service charges that rose by 8 percent in January compared to 7.3 percent in December 2024.

Mr Echoku said annual food crops and related items inflation – although rising - remained subdued at 0.2 percent compared to - 0.7 percent registered in December 2024.

The increase was mainly due to a rise in the prices of tomatoes by 3.5 percent, avocado by 11.2 percent and a reduction in the prices of fresh leaf vegetables by - 1.9 percent. The price of round onions also remained stable, decreasing by - 11.0 percent compared to 16.5 percent in December. 

Ubos further noted that energy fuel and utilities inflation had reduce by 0.3 percent compared to 1.0 percent in December, mainly due to solid fuels inflation, which rose by 7.6 percent, mainly because of a rise in the price of firewood by 18.8 percent, charcoal, which increased by 3.1 percent and a reduction in electricity charges by - 1.9 percent. 

Liquid energy fuels inflation dropped by - 7.5 percent compared to - 8.5 percent driven mainly by petrol prices that decreased by - 9.3 percent to - 10.6 percent, while diesel and kerosene prices dropped by - 7.2 percent and - 2.9 percent, respectively

Inflation was higher in the Kampala High Income Group, which rose to 4.8 percent due to an increase in transport fares and insurance and financial services costs, followed by Masaka Centre (4.1 percent) and Mbarara at 4.11 percent.

However, inflation was lowest in Mbale Centre at 2.0 percent, Gulu and Fortportal, each at 2.1 percent, respectively.