January inflation rate slows to 4 percent

Jan 31, 2013

Uganda's year-on-year inflation rate slowed to 4.9 percent in January from a revised 5.3 percent a month earlier, the statistics office said on Thursday.

Uganda's year-on-year inflation rate slowed to 4.9 percent in January from a revised 5.3 percent a month earlier, the statistics office said on Thursday.

 The Uganda Bureau of Statistics said overall inflation eased to 4.9 percent in January from a revised 5.3 percent a month earlier, but the core rate of inflation, which excludes food crops, fuel, electricity and metered water, rose to 5.6 percent from 4.6 percent in December.

Month-on month, the overall inflation rate was 0.3 percent, the same as in December.

"Decreases in prices were recorded for matooke (plantains), sweet potatoes, pineapples and some fresh vegetables. This was mainly attributed to increased supplies to the market," the statistics bureau said.

"In the non-food category, the price index rose by 0.6 percent. This was driven by increases in prices of alcoholic beverages, rent, pharmaceutical products, petrol, diesel, kerosene, firewood and charcoal in some centres," it said.

Price pressures jumped to an 18-year record high in October 2011 when headline inflation hit 30.5 percent. The central bank raised its key lending rate in the second half of 2011 and inflation fell steadily in 2012, also helped by easing food prices.

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