Inflation decreases
Jan 30, 2004
The monthly headline inflation rate for the month of January 2004 dropped to 4.4% from the 5.9% recorded in December last year
By Emmy Olaki
The monthly headline inflation rate for the month of January 2004 dropped to 4.4% from the 5.9% recorded in December last year.
According to the Uganda Bureau of Statistics (UBOS) figures, this is the biggest drop in prices since January 2001, and is attributed to the substantial reduction in prices of food crops in most major towns.
The annual headline inflation rate for the year ending January 2004 also dropped to 4.0% compared to 5.9% that was recorded for the year ended December 2003.
“This is the lowest inflation rate registered since October 2002. The centres of Mbale and Gulu however experienced high levels of inflation of 7.7% and 6.6% respectively,†according to a UBOS briefing paper issued yesterday.
Headline inflation is measure of relative changes for all goods and services.
Mathew Ssewanyana presented the results at a news conference at the Ministry of Finance headquarters in Kampala.
The monthly composite food crops index dropped by 9.4% during the month compared to a 1.2% increase that was recorded during the month of December 2003.
“This was mainly due to substantial reduction in prices of food crops in most centres,†Ssewanyana explained.
The monthly underlying inflation rate, which is based on the relative changes of goods and services excluding food, rose further by 0.5% during January, compared to 0.1% increase registered during the month of December last year.
“This rise was due to increases in prices of sugar, soda, electricity, charcoal and some household items in some centres,†the report states.
Annual underlying inflation rate for the year ending January 2004 however dropped to 4.7% compared to 5.2% that was recorded for the year ending December 2003. This is the lowest underlying inflation rate registered since July 2003.
Increases in fuel prices that took place during the month of January were not reflected because they happened after the reference period of 15th, so they will be reflected next month.
Prices of fish went up up in all centres except Gulu and Jinja centres, where reductions were recorded. Seasonal as well as distributional factors, coupled with increased demands from the export market led to the increases in the fish prices.
Fish exports are now a leading foreign exchange earner.
The monthly headline inflation rate for the month of January 2004 dropped to 4.4% from the 5.9% recorded in December last year.
According to the Uganda Bureau of Statistics (UBOS) figures, this is the biggest drop in prices since January 2001, and is attributed to the substantial reduction in prices of food crops in most major towns.
The annual headline inflation rate for the year ending January 2004 also dropped to 4.0% compared to 5.9% that was recorded for the year ended December 2003.
“This is the lowest inflation rate registered since October 2002. The centres of Mbale and Gulu however experienced high levels of inflation of 7.7% and 6.6% respectively,†according to a UBOS briefing paper issued yesterday.
Headline inflation is measure of relative changes for all goods and services.
Mathew Ssewanyana presented the results at a news conference at the Ministry of Finance headquarters in Kampala.
The monthly composite food crops index dropped by 9.4% during the month compared to a 1.2% increase that was recorded during the month of December 2003.
“This was mainly due to substantial reduction in prices of food crops in most centres,†Ssewanyana explained.
The monthly underlying inflation rate, which is based on the relative changes of goods and services excluding food, rose further by 0.5% during January, compared to 0.1% increase registered during the month of December last year.
“This rise was due to increases in prices of sugar, soda, electricity, charcoal and some household items in some centres,†the report states.
Annual underlying inflation rate for the year ending January 2004 however dropped to 4.7% compared to 5.2% that was recorded for the year ending December 2003. This is the lowest underlying inflation rate registered since July 2003.
Increases in fuel prices that took place during the month of January were not reflected because they happened after the reference period of 15th, so they will be reflected next month.
Prices of fish went up up in all centres except Gulu and Jinja centres, where reductions were recorded. Seasonal as well as distributional factors, coupled with increased demands from the export market led to the increases in the fish prices.
Fish exports are now a leading foreign exchange earner.