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Uganda's inflation hits 6.7%

By Racheal Nabisubi

Added 28th February 2017 07:12 PM

Core inflation which excludes food, fuel, electricity and metered water increased to 5.7% in February from 5.3% recorded in January

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Core inflation which excludes food, fuel, electricity and metered water increased to 5.7% in February from 5.3% recorded in January

 

Statistics from the Uganda Bureau of Statistics (UBOS) indicate that annual headline inflation for the month of February increased to 6.7% from 5.9% that was recorded in January.

UBOS principal statistician, Vincent Nsubuga, attributed the inflation rise to increase in prices of food crops up to 18.8% from 14.5% previously recorded; especially prices of vegetables from 6.5% to 13.5%.

"It has been a dry season and there has been less harvesting. This explains why prices of food crops have been on the rise" said Nsubuga.

Core inflation which excludes food, fuel, electricity and metered water which are volatile to price changes also increased to 5.7% in February from 5.3% recorded in January.

Nsubuga said the rise in core inflation was due to rise in prices of other goods such as processed foods, clothing and footwear from 4.9% to 5.3%. 

In addition, annual inflation services such as hair dressing, education, rent, health, financial and legal services, hotels and restaurants rose to 5.9% from 5.8% for the period under review. 

Annual energy fuel and utilities (EFU) which consists of electricity, charcoal, firewood, petrol, diesel, paraffin and cooking gas declined to 1.0% from 1.4% that was recorded in January.

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