Uganda registers double-digit inflation

Prices of some consumer goods in a retail shop in Kampala in July. The prices of most consumer goods have since gone up further. PHOTO/ FILE 

What you need to know:

  • Inflationary pressures were more pronounced in Arua (14.4 percent) and Mbale (12.5 percent). 

Uganda has registered its first reading of double-digit inflation in the calendar year as the first quarter of the 2022/2023 fiscal year ended on a grim note.

Headline inflation as measured by the consumer price index (CPI) for September 2022 increased to 10 percent, up from nine percent. Core inflation, which eliminates volatile goods from the food and energy sectors, also soared to 8.1 percent from 7.2 percent in August.

Inflationary pressures were more pronounced in Arua (14.4 percent) and Mbale (12.5 percent). 

Releasing the CPI yesterday, Uganda Bureau of Statistics (Ubos) officials revealed that the main drivers of inflation in Arua were annual foods and non-alcoholic beverages inflation that increased to 24.3 percent in September from the 16.5 percent registered in August.

The food stuffs that registered high inflation rates are green pepper (120.9 percent), maize grain (103.8 percent), dry beans (92.8 percent), cassava flour (121.8 percent), cassava fresh (70.6 percent), maize flour (60.6 percent) and groundnuts (58.9 percent).

In Mbale, the main drivers were annual food and non-alcoholic beverages inflation that increased to 25.2 percent in September up from 22.3 percent in August same year.

Food items that registered high inflation were Irish potatoes (72.2 percent), cassava fresh (84.7 percent), maize grain (126.3 percent), dry beans (84.3 percent), matooke (55.2 percent) and groundnuts (47 percent).

Kampala registered the lowest inflation rate at 8.3 percent in September from 7.6 percent registered in the previous month. This was mainly attributed to transport inflation that decreased to 13 percent down from 13.5 percent registered in August.

The contributors of this decrease were mainly driven by taxi fare short distance (minus 13.4 percent), new motorcycle (minus 7.6 percent) and bus fare long distance (minus 3.4 percent).

While releasing the CPI, Mr Edgar M. Niyimpa, the Ubos principal statistician said energy fuel inflation decreased to 18.7 percent in September, down from 19.6 registered last month.

“This is mainly due to liquid energy fuels inflation that decreased to 50.6 percent this month ended, down from 54.9 percent previous month,” he said.

He noted that specifically, petrol inflation decreased to 55.3 percent in September, down from 59.4 percent the previous month, and cooking gas inflation also decreased to 19.3 percent, down from 27.3 registered in August.

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