Inflation rate down to 4.2%
Aug 01, 2007
LOWER food prices have caused a dip in July’s inflation to 4.2% from 4.4% in June despite high fuel prices.
By Alice Kiingi
LOWER food prices have caused a dip in July’s inflation to 4.2% from 4.4% in June despite high fuel prices.
Matthew Ssewanyana, the Uganda Bureau of Statistics’ director of macro-economics statistics, said the 4.2% was last recorded in May this year.
“Since the introduction of fuel tax in the 2007/08 Budget and the world market fuel prices, we had anticipated that fuel prices would make the inflation rate soar.â€
“Food carries a big weight in the Consumer Price Index.â€
Good rains ensured good supplies of staple foods, vegetables like cabbages and tomatoes and cereals in Kampala, Mbarara and Masaka. Those areas registered the highest reductions in food prices,†Ssewanyana said.
Underlying inflation, which excludes food prices, declined to 6.8% from 7.3%.
He said the high fuel prices did not affect transport to and from the rural areas because the traders were purchasing food at low prices.
“We can possibly hope for lower inflation in the coming months if the ongoing harvesting season accompanied by good rains stretches up to September. We expect plenty of staple foods and vegetables as well as some fruits.â€
Gulu and Mbale had the highest food prices during the month due to a different geographical location, seasonal factors plus different planting and harvesting seasons.
The price of charcoal was lower, while upcountry transport costs were high.
LOWER food prices have caused a dip in July’s inflation to 4.2% from 4.4% in June despite high fuel prices.
Matthew Ssewanyana, the Uganda Bureau of Statistics’ director of macro-economics statistics, said the 4.2% was last recorded in May this year.
“Since the introduction of fuel tax in the 2007/08 Budget and the world market fuel prices, we had anticipated that fuel prices would make the inflation rate soar.â€
“Food carries a big weight in the Consumer Price Index.â€
Good rains ensured good supplies of staple foods, vegetables like cabbages and tomatoes and cereals in Kampala, Mbarara and Masaka. Those areas registered the highest reductions in food prices,†Ssewanyana said.
Underlying inflation, which excludes food prices, declined to 6.8% from 7.3%.
He said the high fuel prices did not affect transport to and from the rural areas because the traders were purchasing food at low prices.
“We can possibly hope for lower inflation in the coming months if the ongoing harvesting season accompanied by good rains stretches up to September. We expect plenty of staple foods and vegetables as well as some fruits.â€
Gulu and Mbale had the highest food prices during the month due to a different geographical location, seasonal factors plus different planting and harvesting seasons.
The price of charcoal was lower, while upcountry transport costs were high.