Prices for construction materials up

Prices of construction materials have gone up for the period that ended in April 2019, a survey by the Uganda Bureau of Statistics (UBOS) has shown.

The overall annual average for inputs into the construction sector increased by 0.3% in the year ending April 2019 compared to the same month last year.

This implies that on average, one had to pay 0.3% higher for the same items for construction works in April 2019 than in April 2018.

Materials used in the construction sector include timber, paint, PVC pipes, water tanks, burnt clay bricks and tiles, cement, steel bars, roofing sheets, electricals, lime, diesel, bitumen, labour and equipment hire.

Releasing the producer price and construction sector indices on Wednesday at Statistics House in Kampala, Aliziki Lubega, the principal statistician, however, said that prices of manufactured goods and utilities decreased by 2.3% compared to 3.0% for the year that ended March 2019.

This is attributed to the decrease in prices of processed foods, non-metallic products, chemical products and leather products among others. 

UBOS principal statistician Aliziki Lubega. Photo by Juliet Kasirye

The construction sector indices help to monitor inputs over time, enable price escalation clause payments to be calculated on large construction contracts that take at least 18 months and provide an indication of growth rate in the construction sector. 

The monthly utility prices increased by 0.8% in April compared to a 0.4% rise recorded in March 2019. The price increment in utility was attributed to a rise in prices of electric power generation by 0.9% in April 2019 compared 0.5% recorded in March 2019.

A reduction of 6.0% for processed food prices was registered in April 2019 compared to 8.0% reduction recorded in March 2019. Items such as sugar, animal and vegetable oils went down due to competition, high fish catch and processed tea among others.

Monthly producer prices of goods produced for the domestic market increased by 0.5% in April 2019 compared to 0.4% recorded in March 2019.

This was driven by an increase in prices of processed food product due to risen prices of grain milling attributed to demand and coffee due to cost packaging material.