Inflation at a 3-year low

Aug 02, 2010

UGANDA’S inflation has dropped to 3.2%, the lowest in three years, the Uganda Bureau of Statistics (UBOS) has said. The reduction was due to a 2.2% dip in food prices, it said.

By Paul Tentana

UGANDA’S inflation has dropped to 3.2%, the lowest in three years, the Uganda Bureau of Statistics (UBOS) has said. The reduction was due to a 2.2% dip in food prices, it said.

“Price decreases were recorded in prices of staple foods, fresh vegetables, pineapples, sweet bananas, beans, rice, sugar and maize flour,” Chris Mukiza, the director for macro-statistics, said.

He added that this was due to an increase in food supplies across the country. “However, smoked fish, fresh milk, chicken and bread prices shot up,” said Mukiza.

He pointed out that the annual core inflation rate, which excludes food crops, fuel, electricity and metered water, remained at 4.6%.

Food crops registered an annual decrease of 2.5% in July compared to 4.2% in June. “Annual energy, fuel and utilities inflation rate reduced significantly to 0.2% in July, from 3.9% in June,” he said.

The monthly inflation rate also dropped by 0.4% compared to a 0.4% rise registered in June. But the monthly core inflation rate went up by 0.3% compared to a 1.2% registered in the previous month.

Mukiza added that increased prices for charcoal and firewood were recorded as well as those for some household and personal goods, secondhand clothes and rent in most centres.

The food index decreased to 156.6 points for the year ended July 2010, from 157 registered in July 2009, indicating an annual drop of 0.3%.

The non-food index rose to 139 points for the year ending July 2010 compared to 131.8 recorded for the year ended July 2009, indicating a rise of 5.5% in non food prices.

Mukiza noted that the Arua inflation centre registered a reduction of 2.8% compared to the Mbarara and Kampala high-income centres that registered rates of 4.8% and 4.5% respectively in July, when you compare inflation by centres.

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