By Samuel Sanya
Year-on-year headline inflation is down to 8.1% at the end of October with lower prices for vegetable oils, milk, eggs and vegetables. This has increased the purchasing power of money.
Food prices are the single largest component of inflation.
Annual headline inflation was revised to 8.4% at the end of September after education data was analysed by the Uganda Bureau of Statistics (UBOS).
Annual core inflation which excludes prices of volatile items like food and water also dropped to 7.2% from 7.4%.
“The decline in food inflation was driven by a reduction in prices of fresh vegetables, fruits, dried beans and milk in most centres attributed to increased food supplies on the market,” Chris Mukiza, the UBOS director for macro-economic statistics told journalists in Kampala.
Annual food inflation decreased to 10.9% in October from 11.7%. Non-food inflation is also down to 6.8% from 7.1% boosting the disinflation momentum.
Despite the general slowdown in the pace of new prices, there were higher prices for staple food items, telephone tariffs, rent, clothing, petrol, diesel, and chicken around the country.
Mbarara recorded the highest inflation at 10.2% Masaka at 10%, and Kampala at 9.7%. Arua had the slowest price movements at 0.6% mainly due to decreased tobacco leaf, charcoal, and food prices.