Food Prices Go Up
Sep 30, 2003
THE annual headline inflation surprisingly slid to a single digit, despite higher prices for manufactured commodities and services during September.
By Steven Odeu
THE annual headline inflation surprisingly slid to a single digit, despite higher prices for manufactured commodities and services during September.
In the latest Consumer Price Index (CPI) released yesterday by the Uganda Bureau of Statistics (UBOS), headline inflation for the year ending September dropped to 9.4% from 10.3% in August.
However, despite this drop of 9 percentage points between August and September, prices for almost all food crops, manufactured commodities and service charges for September were substantially higher than those recorded for September last year.
The 9.4% rate follows five consecutive months of levels above 10% after the first three months of the year when inflation was 6.8%, 7.6% and 8.5% respectively. July was the highest at 11.1%.
UBOS officials said the latest inflation dip is due to lower prices for cereal foods and transport charges.
Economists however, said if the increases in the prices of staple foods persist, the inflation might go up again.
“If the prices of manufactured commodities or services charges continue with a higher stance as it is now, we expect to see a reversal in the inflation rate that had started declining. In the next few months we could see inflation rising again,†Matthew Sewanyana, the UBOS director for macroeconomic statistics, said.
According to the CPI, which is a measure of inflation based on the changing cost of a fixed basket of goods and services consumed by a household, matooke, (which carries a big weight in the index), went up in all centres except Gulu that was supported by improved security enabling farmers to work on their lands.
The annual underlying inflation rate dropped to 6.1% in September from 6.5% in August, largely due to lower fuel prices and a reductions in transport fares that resulted to cuts in the prices of manufactured goods.
Underlying inflation is based on relative changes in prices for all goods and services excluding food crops, while headline inflation rate is based on relative changes in prices for all goods and services.
Excluding food crops in underlying inflation minimises the effects of irregular long-term price fluctuations that are mainly induced by weather conditions.
Prices of staple foods, especially matooke, rose sharply in all centres except Gulu. Increases in prices were however due to prolonged drought experienced in most growing areas in the country.
Fish prices rose in Jinja and Kampala but dropped substantially in the other centres. Prices of milk rose in Kampala and Mbale but dropped in Masaka and Mbarara. Ends
THE annual headline inflation surprisingly slid to a single digit, despite higher prices for manufactured commodities and services during September.
In the latest Consumer Price Index (CPI) released yesterday by the Uganda Bureau of Statistics (UBOS), headline inflation for the year ending September dropped to 9.4% from 10.3% in August.
However, despite this drop of 9 percentage points between August and September, prices for almost all food crops, manufactured commodities and service charges for September were substantially higher than those recorded for September last year.
The 9.4% rate follows five consecutive months of levels above 10% after the first three months of the year when inflation was 6.8%, 7.6% and 8.5% respectively. July was the highest at 11.1%.
UBOS officials said the latest inflation dip is due to lower prices for cereal foods and transport charges.
Economists however, said if the increases in the prices of staple foods persist, the inflation might go up again.
“If the prices of manufactured commodities or services charges continue with a higher stance as it is now, we expect to see a reversal in the inflation rate that had started declining. In the next few months we could see inflation rising again,†Matthew Sewanyana, the UBOS director for macroeconomic statistics, said.
According to the CPI, which is a measure of inflation based on the changing cost of a fixed basket of goods and services consumed by a household, matooke, (which carries a big weight in the index), went up in all centres except Gulu that was supported by improved security enabling farmers to work on their lands.
The annual underlying inflation rate dropped to 6.1% in September from 6.5% in August, largely due to lower fuel prices and a reductions in transport fares that resulted to cuts in the prices of manufactured goods.
Underlying inflation is based on relative changes in prices for all goods and services excluding food crops, while headline inflation rate is based on relative changes in prices for all goods and services.
Excluding food crops in underlying inflation minimises the effects of irregular long-term price fluctuations that are mainly induced by weather conditions.
Prices of staple foods, especially matooke, rose sharply in all centres except Gulu. Increases in prices were however due to prolonged drought experienced in most growing areas in the country.
Fish prices rose in Jinja and Kampala but dropped substantially in the other centres. Prices of milk rose in Kampala and Mbale but dropped in Masaka and Mbarara. Ends