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EAC countries recorded higher inflation rates in July — report
Uganda, Kenya, Tanzania and Rwanda recorded higher inflation rates of 4.0%, 6.5%, 4.2% and 13.8% from 3.7%, 6.4%, 4% and 12.7% respectively in the previous month
EAC countries recorded higher inflation rates in July — report
By: Umar Kashaka, Journalist @New Vision
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Annual headline inflation trended upwards in July 2026 for the majority of East African Community (EAC) states.
Uganda, Kenya, Tanzania and Rwanda recorded higher inflation rates of 4.0%, 6.5%, 4.2% and 13.8% from 3.7%, 6.4%, 4% and 12.7% respectively in the previous month.
This is according to Uganda’s finance ministry's performance of the economy report for July 2026.
The increase in Uganda’s inflation from 3.7% was mainly attributed to higher utility costs (both water and electricity), fuel prices, as well as a rise in food prices due to higher transportation costs when compared to the same period a year back.
Higher inflation in Kenya was primarily driven by surging fuel and transportation costs, while in Tanzania, it was attributed to rising transportation, housing and utility costs. In Rwanda, higher inflation was driven by the increased prices of food.
Headline inflation refers to the rate at which prices of general goods and services in an economy change over a period of time, usually a year.
Higher inflation in Kenya was primarily driven by surging fuel and transportation costs, while in Tanzania, it was attributed to rising transportation, housing and utility costs. In Rwanda, higher inflation was driven by the increased prices of food.
Headline inflation refers to the rate at which prices of general goods and services in an economy change over a period of time, usually a year.
On a month-to-month basis, headline inflation declined slightly to 0.2% in July 2026 from 0.6% in June 2026.
This decline was mainly attributed to a slowdown in the rate at which domestic fuel prices increased, coupled with a decline in prices of manufactured foods such as whole grain maize, sorghum grains, rice, maize flour, bread, among others.
The moderation in monthly inflation, even as annual headline inflation rises, suggests that underlying price pressures are easing, indicating a likely deceleration in headline inflation in the near term.
Annual core inflation remained unchanged at 3.4 percent in July 2026, signaling stability in aggregate demand as well as stable long-term prices for underlying goods and services. A breakdown of the core basket shows that most items in the core basket showed little or no variations in their rate of price change.
Core inflation is a subcomponent of headline inflation that excludes items subject to volatility in prices. It excludes energy, fuels, utilities, food crops and related items.
This decline was mainly attributed to a slowdown in the rate at which domestic fuel prices increased, coupled with a decline in prices of manufactured foods such as whole grain maize, sorghum grains, rice, maize flour, bread, among others.
The moderation in monthly inflation, even as annual headline inflation rises, suggests that underlying price pressures are easing, indicating a likely deceleration in headline inflation in the near term.
Annual core inflation remained unchanged at 3.4 percent in July 2026, signaling stability in aggregate demand as well as stable long-term prices for underlying goods and services. A breakdown of the core basket shows that most items in the core basket showed little or no variations in their rate of price change.
Core inflation is a subcomponent of headline inflation that excludes items subject to volatility in prices. It excludes energy, fuels, utilities, food crops and related items.