Commodity prices remain high in Arua, Gulu despite marginal drop in inflation

The speed at which prices have been increasing eased in November compared to about three months ago. Photo / File 

What you need to know:

  • Data released yesterday in Kampala indicates that inflation, which is the rate of increase in prices of goods and services, slightly eased in November to 10.6 percent compared to 10.7 percent in October. 

Commodity prices remained relatively high in Gulu and Arua compared to other parts of the country amid a slight easing in the speed of inflation, according to Uganda Bureau of Statistics (Ubos) 

Data released yesterday in Kampala indicates that inflation, which is the rate of increase in prices of goods and services, slightly eased in November to 10.6 percent compared to 10.7 percent registered in October. 

The rate of increase in prices in Arua remained high but eased slightly to 13.2 percent from 13.4 percent, driven by food and non-alcoholic beverages inflation, which, just like the month before, remained at 23.1 percent. 

Cassava and related products, beans, sugar and rice registered some of the highest price increases in Arua.  

In Gulu, prices rose by 12.8 percent in November driven by food and non-alcoholic inflation, which increased to 26.5 percent from 24.1 percent in October. 

Ubos noted that maize flour recorded  the highest price increase in Gulu, followed by sugar and beans, whose inflation rose to 103.1 percent, 63.5 percent and 52 percent. 

Rice, sorghum grains, cassava and related products, furnishings, household equipment and routine household also registered high prices increase in Gulu. 

Movement in prices in the Kampala High Income group remained stable at 9.1 percent due to stability in insurance and financial services inflation and information and communication inflation. 


While releasing the findings yesterday, Mr Edgar Niyimpa, the Ubos principal statistician macro-economic, said the easing in the general inflation outlook had been driven by a stable movement in the prices of goods and services in Kampala, boosted by slight or zero changes in other income categories. 

Annual insurance and financial services inflation stood at 0.0 percent while a slight increase was registered in information and communication inflation, which increased to 1.5 percent from 1.3 percent in October.  

Ubos also indicated that whereas inflation had slightly eased to 10.6 percent the outlook remains fragile but noted that the speed of increase had slowed compared to the past three months. , in which it peaked to 10.7 percent. 

Energy, fuel and utilities inflation decreased by 12.2 percent from 15.2 percent in October, driven by a decrease in liquid energy fuels inflation which decreased to 32.7 percent compared to 42.1 percent in October. 

This was driven by a drop in the price of petrol, which fell by 33.5 percent compared to 45.6 percent, while increase in diesel prices eased to 42.2 percent compared to 52.1 percent in October. 

On the general outlook, however, food crops and related items inflation fell by 27.8 percent compared to 25.6 percent in October due to an increase in vegetables, tubers, plantains, cooking bananas and pulses inflation, which rose to 35.4 percent compared to 33.8 percent in October. 

During the period, Ubos indicated, the price of matooke increased by 66.2 percent while beans increased by 37.3 percent.

Movement of commodity prices between October and November  

Item

Unit

Price (Oct)

Price (Nov)

Maize flour

1 Kg

Shs3,967

Shs3,931

Cassava flour

1 Kg

Shs1,048

Shs1,119

Rice

1 Kg

Shs5,172

Shs5,192

Matooke

1 Kg

Shs1,233

Shs1,244

Pineapple

1 Kg

Shs1,372

Shs1,159

Sugar

1 Kg

Shs5,181

Shs4,969

Cassava dried

1 Kg

Shs2,016

Shs2,253

Irish potato

1 Kg

Shs1,963

Shs2,186

Petrol 

1 Liter

Shs6,153

Shs5,828

Diesel 

1 Liter

Shs5,769

Shs5,571

Paraffin

1 Liter

Shs4,544

Shs4,548

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