Uganda’s inflation edged up to 3.5% in April

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Uganda’s annual headline inflation edged up to 3.5% in April 2025 from 3.4% a month earlier, largely driven by a rise in core inflation to 3.9% from 3.6%.

This is according to the finance ministry report on the performance of the economy for April 2025.

The rise in core inflation was mainly driven by an increase in prices for staple foods such as whole grain maize, maize flour, millet flour, rice, sugar and meats like beef, pork and goat.

Additionally, higher costs for services, particularly in hotels, restaurants and accommodation, also contributed to the rise, the report said.

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.

Inflation in EAC states

In April 2025, annual headline inflation varied across the East African Community (EAC) member countries.

It edged upwards in Uganda, Kenya, Rwanda and South Sudan to 3.5%, 4.1%, 6.3% and 16% from 3.4%, 3.65, 4.9% and 14.1%, respectively, driven by higher food and non-alcoholic beverage prices in Kenya, Rwanda and South Sudan, and increased core inflation in Uganda.

The report says in contrast, annual headline inflation declined in Tanzania to 3.2% from 3.3%, mainly driven by lower food and beverage prices.

Burundi also registered a decline in annual headline inflation to 39.1% from 40.9%, respectively, for the year ending March 2025.

In April 2025, the currencies for Uganda, Kenya, Rwanda, Burundi and Tanzania registered depreciation against the US dollar.

The Ugandan Shilling depreciated by 0.04% while the Rwandan Franc, Burundian Franc, Kenyan Shilling, and Tanzanian Shilling depreciated by 0.32%, 0.16%, 0.16% and 1.69%, respectively.