Is it inflation or reduction in incomes: What is pushing up prices of goods, services?

Whereas Uganda Bureau of Statistics has indicated a drop in transport fares over the last two months, fuel prices have gone up, threatening to distablise the price of different commodities and services. PHOTOs | Edgar R Batte 

What you need to know:

Prices of a number of items have been increasing in the last few months, prompting some Ugandans to speculate that government might not be telling the true status of inflation. However, economists are giving a different reasoning, arguing that the current situation might be driven by a drop in real income.  

It is amazing how everyone can have a totally different view on something that is all over for everyone to see. In the last three or four months, it has been popularly believed that the cost of living has drastically increased. Yes, most Ugandans, of course off the streets of Kampala, had believed so, but economists have a totally different view.


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