Why food prices are on the rise
In details contained in the Consumer Price Index for November, Ubos noted that seasonal changes had impacted the food production cycle, thus, causing an increase in the price of food crops. Photos/ File
What you need to know:
- Beef prices, she said, increased by 0.4 percent, rice by 0.5 percent, and matooke by 9 percent in November, while tomato prices rose by 5.3 percent, passion fruits by 8.8 percent and pineapples by 20.7 percent.
Uganda Bureau of Statistics (Ubos) has indicated that the price of most food items has been increasing due to seasonal factors that have resulted in low production and supply.
In details contained in the Consumer Price Index for November, Ubos noted that seasonal changes had impacted the food production cycle, thus, causing an increase in the price of food crops.
While realising the Consumer Price Index in Kampala, Ms Aliziki K Lubege, the Ubos director economic statistics, said the fall in food produciton had seen the price of maize flour increase by 5.3 percent from - 3.2 percent in October, while sugar had increased by 2.2 percent.
Beef prices, she said, increased by 0.4 percent, rice by 0.5 percent, and matooke by 9 percent in November, while tomato prices rose by 5.3 percent, passion fruits by 8.8 percent and pineapples by 20.7 percent.
“The increase in food crops and related items were due to seasonal factors, resulting in forces of demand and supply. The weather factor has also contributed to an increase in the prices of some food crop items,” she said.
However, energy fuel and utilities prices dropped by 0.98 percent in November mainly due to a decrease in the prices of firewood, which reduced by 3.5 percent from 2.9 percent in October, while petrol prices dropped by 1.9 percent from 2 percent. Diesel prices decreased by 1.7 percent.
Thus, the reduction in energy fuel and utilities prices offset the increase in the prices of food crops, thus, maintaining the rate of inflation at 2.9 percent in November.
Ubos also indicated that service charges reduced by 5.9 percent from 6.2 percent, with expenditure on services such as inpatient care reducing by 6.6 percent.
