Ministry explains skyrocketing commodity prices

May 16, 2022

Speaking during a high-level policy dialogue in Kampala, Kaggwa described the crisis as a global phenomenon that will be felt for a while.

As predicted, several economies across the globe are currently entangled with economic crises, characterised by high fuel prices, a rise in inflation, and skyrocketing prices of essential commodities.

Simon Okitela
Journalist @New Vision

BUSINESS | COMMODITY PRICES | KAGGWA 

KAMPALA - The director of economic affairs at the finance ministry, Moses Kaggwa, has said the current national economic crisis is irreversible and with no immediate solutions despite governments efforts to improve it. 

Speaking during a high-level policy dialogue in Kampala, Kaggwa described the crisis as a global phenomenon that will be felt for a while.

“It is true, the economic situation is tough and most of it are effects of the COVID-19 lockdown and the ongoing war between Russia and Ukraine, but as government, we are not seated. We are working around the clock to improve things,’’ Kaggwa explained. 

The International Monetary Fund, last month warned that the war in Ukraine following Russia’s invasion has economic damages that will contribute to a significant slowdown in global growth this year. 

Several advocacy groups and civil society organisations have recently recommended that government harmonises tax on some products to handle the current economic shock. 

They also recommend encouraging local production and developing food reserves.

Situation elsewhere 

As predicted, several economies across the globe are currently entangled with economic crises, characterised by high fuel prices, a rise in inflation, and skyrocketing prices of essential commodities, among others. 

Uganda is no exception to these crises.

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