Transport costs push up Uganda’s inflation to 3.0% in April

________________

Uganda’s annual headline inflation increased to 3.0% in April 2026, up from 2.8% the previous month, mainly due to an increase in both energy fuel and utilities (EFU) inflation and core inflation following the rise in domestic fuel prices and associated transport costs.

This is according to the Ministry of Finance's performance of the economy report for April 2026.

Annual core inflation increased to 3.0% in April 2026 from 2.9% the previous month, mainly driven by an increase in transport costs.

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.

Core inflation excludes EFU, food crops and related items. 

More broadly, the overall cost of passenger transport services increased on a year-on-year basis to 4.2% in April 2026 from 0.6% the previous month, triggered by the rise in international fuel prices.

Specifically, bus fares for long-distance travel increased year-on-year by 2.0% in April 2026 from a 3.4% decline in March 2026, and taxi fares for medium distance increased year-on-year by 2.7% in April 2026 from a 0.3% decline in March 2026.

Domestic flight fares increased by 2.7% year-on-year in April 2026 from a 3.8% decline in March 2026, while international flight fares increased year-on-year by 18.6% in April 2026 from 4.0% increase in March 2026.

Annual EFU inflation continued on an upward trend, increasing to 6.1% in April 2026 from 4.1% the previous month. This was mainly driven by an increase in domestic fuel prices as well as an increase in charcoal prices.

Domestic fuel prices rose on account of a continued increase in international oil prices following global geopolitical tensions, the report said.

Nonetheless, the impact of rising international oil prices continues to be moderated through the government’s efforts to ensure a consistent fuel supply through centralised procurement of fuel imports by the Uganda National Oil Company, along with efforts to manage strategic fuel reserves in Jinja to minimise shortages.

As a result, fuel pump prices in Uganda have been relatively stable and lower compared to other countries in the East African Community region.

In contrast, annual food crop inflation declined to 0.6% in April 2026 from 1.0% in the previous month. This decline was mainly driven by larger reductions in the prices of some food crops, alongside a slower increase in the prices of others, as favourable weather conditions boosted harvests and improved food supply across the country.

Food crops that recorded a further reduction in prices included: mangoes, tomatoes, eggplants, cucumbers, green pepper, beans, sweet potatoes, peas and malewa. Other food crops that recorded a slowdown in the rate at which their prices increased included avocados, papaya, groundnuts and Irish potatoes.