Inflation increases in four EAC countries — report

Annual headline inflation increased in four East African Community (EAC) countries in February 2025, the latest official figures show.

The performance of the economy report for February that was released by Uganda’s Ministry of Finance indicated that Kenya’s annual headline inflation rose to 3.5% from 3.3% the previous month, mainly due to higher food and non-alcoholic beverage prices.

Similarly, Tanzania’s inflation edged up to 3.2% from 3.1%, driven by rising costs in housing, water, and utility bills, while that of Uganda increased to 3.7% from 3.6% the previous month.

The increase in Uganda’s inflation was largely attributed to an increase in annual food crops and related items inflation recorded at 4.3% in the year ending February 2025 from 0.2% recorded in January 2025.

In the same manner, Burundi’s headline inflation increased to 38.2% in January 2025 from 36.5% in December 2024, primarily driven by higher food prices.

Contrarily, annual headline inflation for Rwanda eased in February, declining to 6.3%, down from 7.4% the previous month.

This was primarily driven by reduced prices for food and non-alcoholic beverages (vegetables, milk, cheese and eggs), recreation and culture and housing, water, electricity, gas and other fuels, among others.

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.

EAC comprises eight countries, namely Burundi, DR Congo, Kenya, Rwanda, South Sudan, Uganda, Tanzania and Somalia.