Inflation stood at 2.2% in 2021
A vendor waits for customers in Kampala. The annual average headline inflation for 2021. PHOTO | FILE
What you need to know:
- The increase in annual non-core inflation is mainly attributed to annual Energy Fuel and Utilities (EFU) increased to 3.2 percent, up from minus 2.0 in November 2021.
A slower rise in prices of goods and services following reopening of most sectors of the economy in 2021 helped Uganda’s inflation rate to decline in 2021.
The above development relieved policy makers from policy adjustments to counter the rising inflation while relieving pressure from the general public.
Uganda Bureau of Statistics (UBOS) said on December 31 that the annual average headline inflation for the calendar year 2021 was recorded at 2.2 percent compared to 2.8 percent recorded in the calendar year 2020.
Principal statistician price index Uganda Bureau of Statistics, Mr Edgar Niyimpa said Uganda’s annual average core inflation for the calendar year 2021 was recorded at 2.8 percent from the 3.2 percent recorded during the calendar year ended 2020.
He attributed the reduction in inflation rate in 2021 to reopening of the economy unlike in 2020, which saw most of the economic sectors closed as the government tried to control the spread of Covid-19 pandemic.
“Although the prices still increased in 2021, they were not as high as in 2020,” he said.
Mr Niyimpa said most sectors of the economy performed better in 2021.
Meanwhile, Mr Niyimpa said Uganda’s inflation rate as measured by the consumer price index for the last 12 months ranging from December 2020 to December 2021 increased to 2.9 percent up from 2.6 percent in November 2021.
Rise in commodity prices
This was mainly driven by the increase in prices of commodities under food and non-Alcoholic beverages 5.3 percent between November 2020 and December 2021, transport 4.2 percent between November 2020 and December 2021, alcoholic beverages, tobacco and narcotics’ 1.2 percent between November 2020 and December 2021.
Housing, water electricity, gas and other fuels’ stood 0.5 percent between November 2020 and December 2021.
However, Mr Niyimpa said there were some decreases in the prices of commodities under clothing and footwear, which declined by 0.8 percent, restaurants and accommodation services 1.7 percent and health services 5.4 percent.
Speaking about measures of inflation, Mr Niyimpa said: “During the period, the core and non-core inflation for the 12 months to December 2021 increased to 2.9 percent in December 2021 up from 2.6 percent in November 2021.”
This is mainly attributed to annual ‘other goods’ inflation that increased to 4.0 percent for the 12 months to December 2021, up from 3.5 percent in November 2021.
In addition, annual services inflation registered 1.5 percent in December 2021 the same rate recorded in November 2020.
In the core and non-core inflation for the 12 months to December 2021 increased to 3.0 percent up from 2.9 percent in November 2021.
The increase in annual non-core inflation is mainly attributed to annual Energy Fuel and Utilities (EFU) increased to 3.2 percent, up from minus 2.0 in November 2021.
