Reduction in local gin and maize prices drive down inflation

The monthly headline inflation as measured by consumer price index for June 2023 is registered at 4.9 per cent compared to 6.2 per cent registered in May same year.

The main drivers were local gin inflation that registered 0.4 per cent in June compared to compared to 10.4 per cent in May 2023 and maize flour inflation registered 20.9 per cent in June compared to 28.0 per cent in May.

Also rice inflation registered 31.7 per cent in June compared to 35.3 per cent in May and cassava flour inflation registered 34.6 per cent in June compared to 50.5 per cent in May.

While releasing the findings on Friday, Ms Aliziki Kaudha Lubega director micro-economics at Uganda Bureau of Statistics (UBOS) said that in addition, annual services inflation decline to 3.3 per cent in June compared to 3.4 per cent in May same year.

“The reduction in annual services inflation is attributed to transport inflation that decelerated to negative 2.6 per cent in June compared to negative 0.3 percent in May 2023,” she said.

According to her, other drivers were food crops and related items inflation that registered 12.3 per cent in June compared to 15.7 per cent in May same year.

She attributed this to beans inflation that registered 28.4 per cent in June compared to 40.1 per cent in May, cooking oil inflation that registered 34 per cent compared 46.3 percent in May and sweet potatoes inflation that was recorded at negative 1 percent in June compared to 15.9 per cent registered in May.

Ms Lubega noted that tomatoes inflation registered negative 32.6 per cent in June compared to 26.2 perc ent recorded in May 2023.

In addition, energy fuels and utilities inflation slowed down to negative 3.1 per cent in June compared 0.9 per cent in May which was mainly due to liquid energy fuels inflation that registered negative 11.9 per cent in June compared to negative 4.4 per cent in May.

[email protected]