Rate of price increase for goods, services slows down
What you need to know:
- The rate at which prices of goods and services have been increasing was slower in February than in January.
A decline in commodity prices, especially food and fuel forced a drop in inflation to 9.2 percent in February from 10.4 per cent in January.
The drop means that the rate at which prices of goods and services have been increasing was slower in February than in January.
This is the first time Uganda is registering single digit inflation since September 2022 when inflation rose to 10 percent, before peaking to 10.7 percent in October last year.
Ms Aliziki K Lubega, the Uganda Bureau of Statistics director economic statistics, said the drop was mainly due to a decline in maize flour prices, which dropped to 53.3 percent from 90.8 percent in January.
Sugar prices declined to 42.8 percent compared to 50.4 percent while rice inflation fell to 44.4 percent from 51.4 percent in January 2023.
Laundry soap inflation, which had been one of the most volatile, dropped to 21.5 percent from 51.4 percent.
The decrease was further supported by a decline in paraffin prices, which during the month averaged at Shs4,545 while diesel and petrol dropped to Shs5,109 and Shs5,028, respectively.
Food crops inflation slightly dropped to 27.4 percent from 27.6 percent while energy fuel and utilities inflation fell to 5.2 percent from 7.6 percent.
However, during the period, a kilogramme of matooke increased from an average of Shs667 to Shs1,011 while sweet potatoes rose from Shs849 to Shs1,068 per kilogramme.
Refined oil slightly decreased from Shs9,895 to Shs9,794 for every litre while a kilogramme of a bar of laundry soap increased from Shs5,124 to Shs6,327.
During the period, core inflation reduced to 7.8 percent from 9 percent due to a drop in food crops inflation, which slightly dropped to 27.4 percent 27.6 percent.
Energy Fuel and Utilities inflation dropped to 5.2 percent from 7.6 percent due to liquid energy fuels inflation, which declined to 9.1 percent from 14.8 percent in January.
Petrol inflation dropped to 1.5 percent in February from 7.1 percent while charcoal inflation declined to 10.2 percent from 14.3 percent.
Geographically, Ms Lubega said, Arua registered the highest inflation for the second time in the last 12 months, rising to 13.8 percent from 13.1 percent.
Arua was followed by Gulu, whose inflation slightly reduced to 12.3 percent from 12.4 percent in January.
Kampala high income registered the lowest inflation of 6.8 percent from 8.4 percent due to a drop in food and nonalcoholic beverages inflation, which fell to 16.5 percent from 20.4 percent January.
However, Dr Chris N. Mukiza, the Uganda Bureau of Statistics executive director, said that whereas inflation has been dropping it was still early to project further declines given a number of shocks that continue to threaten the economy.
“Let us wait and see what happens in March, April, May and June to see how inflation is behaving,” he said.