Commodity price pressures ease in March – UBOS

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Uganda’s annual headline inflation rate eased to 3.4% in March 2025, down from the previous month’s rate of 3.7%, according to the Uganda Bureau of Statistics (UBOS).

Core inflation, which excludes food crops and energy, declined to 3.6%.  Inflation for other goods softened to 2.6% in March, down slightly from 2.7% in February.

The slowdown was driven primarily by falling inflation in services and other goods. According to UBOS a significant reduction in the rate of price pressures was observed in passenger transport, hospitality, and staple food items.

“Prices are still going up and we would encourage Ugandans to spend sparingly. When inflation eases, it doesn’t mean things are cheaper but it means the rate at which they are increasing is slow. The 3.4% only adds the previous rate,” Samuel Echoku, head of macroeconomic statistics department at UBOS, said.

UBOS reported a decline in passenger transport by road inflation, which contracted by 1.2% in March 2025 compared to a 1.0% drop in February. Similarly, hotel and lodging service charges fell by 3.2% year-on-year, an improvement from the 4.4% decline recorded in February.

Consumers also saw relief in prices for matooke (cooking bananas), cassava, onions, mangoes, and Irish potatoes, all of which recorded slowed inflation. These trends according to UBOS mean that there has been improved affordability for staple foods among several households.