Inflation rate falls
Jun 03, 2005
THE annual headline inflation rate for the year ending May 2005 has reduced to 11.7% from 12.6% in April.
By Doreen Kansiime
THE annual headline inflation rate for the year ending May 2005 has reduced to 11.7% from 12.6% in April.
This is the first drop in the headline inflation rate, which has been rising continuously since the beginning of the 2004/05 financial year.
Matthew Ssewanyana, the director of macro-economics at Uganda Bureau of Statistics, released the May Consumer Price Index (CPI) at the Ministry of Finance offices in Kampala recently.
Ssewanyana said the drop was due to lower prices of food, which make up the biggest percentage of the CPI.
“The rains, which started after a long drought in March, have contributed to the decrease leading to a good harvest and lower prices of food,†he said.
However, Ssewanyana said the rain had also led to increases in prices of some foods like tomatoes because they rot during rainy seasons. He said the rains had also affected some areas’ transport systems negatively.
The underlying inflation rate, which excludes food, rose to 6.3% compared with 4.9% in April due to the rise in prices of essential goods like fuel.
The monthly headline inflation rate went up by 0.1% in May compared with 3.3% in April.
THE annual headline inflation rate for the year ending May 2005 has reduced to 11.7% from 12.6% in April.
This is the first drop in the headline inflation rate, which has been rising continuously since the beginning of the 2004/05 financial year.
Matthew Ssewanyana, the director of macro-economics at Uganda Bureau of Statistics, released the May Consumer Price Index (CPI) at the Ministry of Finance offices in Kampala recently.
Ssewanyana said the drop was due to lower prices of food, which make up the biggest percentage of the CPI.
“The rains, which started after a long drought in March, have contributed to the decrease leading to a good harvest and lower prices of food,†he said.
However, Ssewanyana said the rain had also led to increases in prices of some foods like tomatoes because they rot during rainy seasons. He said the rains had also affected some areas’ transport systems negatively.
The underlying inflation rate, which excludes food, rose to 6.3% compared with 4.9% in April due to the rise in prices of essential goods like fuel.
The monthly headline inflation rate went up by 0.1% in May compared with 3.3% in April.