Uganda inflation hits 12.4%
Jun 30, 2008
KAMPALA-Uganda’s annual inflation hit a three-year high of 12.4% in June, up from 11.2% the previous month, driven mainly by higher fuel and food costs.
KAMPALA-Uganda’s annual inflation hit a three-year high of 12.4% in June, up from 11.2% the previous month, driven mainly by higher fuel and food costs.
It was the highest level in the east African nation since April 2005 when the inflation was 12.6%. “The rise in the inflation rate is attributed to higher prices of food, fuel, beverages, transport and household items,†the Uganda Bureau of Statistics said.
East Africa’s major economies, Kenya, Uganda and Tanzania, have all suffered inflationary pressures this year both due to global price trends and the impact of a post-election crisis in Kenya that damaged regional trade in January and February. The crisis led to violence and the death of many people.
Kenya’s year-on-year inflation hit 31.5% in May. Uganda’s core inflation, which excludes food, rose to 12% in the year to June from 11.8% in May.
The bureau said heightened regional demand for Uganda’s food and manufactured items, mainly from southern Sudan, would add to inflationary pressures.
“Tanzania put a ban on export of food. At the same time, maize supply has almost dried up in eastern Kenya. Most of these regions, including southern Sudan, are looking at Uganda as a source, which has put pressure on prices,†the bureau elaborated.
Reuters
It was the highest level in the east African nation since April 2005 when the inflation was 12.6%. “The rise in the inflation rate is attributed to higher prices of food, fuel, beverages, transport and household items,†the Uganda Bureau of Statistics said.
East Africa’s major economies, Kenya, Uganda and Tanzania, have all suffered inflationary pressures this year both due to global price trends and the impact of a post-election crisis in Kenya that damaged regional trade in January and February. The crisis led to violence and the death of many people.
Kenya’s year-on-year inflation hit 31.5% in May. Uganda’s core inflation, which excludes food, rose to 12% in the year to June from 11.8% in May.
The bureau said heightened regional demand for Uganda’s food and manufactured items, mainly from southern Sudan, would add to inflationary pressures.
“Tanzania put a ban on export of food. At the same time, maize supply has almost dried up in eastern Kenya. Most of these regions, including southern Sudan, are looking at Uganda as a source, which has put pressure on prices,†the bureau elaborated.
Reuters