Inflation varied across EAC states in May—report
Annual food crops and related items inflation exhibited a similar trend, increasing to 4.3% from 2.4%, while the general price level for energy, fuel and utilities continued to decline, registering a deflation of 0.9% for the year ending May 2025.
The Performance of the Economy report for May 2025 says annual headline inflation increased in Uganda and Rwanda and remained unchanged for Tanzania. (New Vision/Files)
By Umar Kashaka
Journalists @New Vision
Annual headline inflation varied across the East African Community (EAC) partner states in May 2025, Uganda’s finance ministry's report indicates.
The Performance of the Economy report for May 2025 says annual headline inflation increased in Uganda and Rwanda and remained unchanged for Tanzania.
In Uganda, it increased to 3.8% in May, up from 3.5% a month earlier, largely driven by a rise in annual core inflation, which rose to 4.2% from 3.9%.
Annual food crops and related items inflation exhibited a similar trend, increasing to 4.3% from 2.4%, while the general price level for energy, fuel and utilities continued to decline, registering a deflation of 0.9% for the year ending May 2025.
In particular, prices for goods such as beef, maize flour, fresh tilapia, cooking bananas (matooke), and sweet potatoes saw a pickup in May.
In Rwanda, the annual inflation rate increased to 7.7% in May from 6.6%, the prior month, with the main upward pressure coming from prices of food and non-alcoholic beverages, housing and utilities, and transportation.
Similarly, Burundi’s annual inflation rate continued on an upward trend, increasing to 45.5% in April, compared to 41% the previous month, partly on account of higher food prices.
Conversely, Kenya’s annual inflation rate declined to 3.8% from 4.1% primarily driven by a slowdown in the price of food and non-alcoholic beverages, particularly potatoes (Irish), oranges, and fresh packaged cow milk.
Inflation for Tanzania remained unchanged at 3.2% in May, the same rate as recorded a month earlier.
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, while core inflation is a subcomponent of headline inflation that excludes items subject to volatility in prices.
It excludes energy, fuel, utilities, food crops and related items.
EAC comprises eight countries, namely Burundi, DR Congo, Kenya, Rwanda, South Sudan, Uganda, Tanzania and Somalia.