Food, power push inflation up 9.2%
Dec 02, 2006
THE November inflation rose to 9.2% from 7.2% in October, the highest rate since August last year on the back of higher food and electricity prices, the Uganda Bureau of Statistics (UBOS) said.
By Alice Kiingi
THE November inflation rose to 9.2% from 7.2% in October, the highest rate since August last year on the back of higher food and electricity prices, the Uganda Bureau of Statistics (UBOS) said.
“This has been the highest inflation rate of this year since August last year.
“The big increase was due to high price levels for food stuffs, cereals, fruits and vegetables,†said UBOS director of macro-economic statistics, Mathew Ssewanyana.
In August last year, inflation was at 7.8%.
“Domestic and industrial electricity tariffs went up by 40% in all centres effective November 1. The manufacturers have to make profits. So we expect the prices of commodities to rise,†said Ssewanyana.
Releasing the monthly consumer price index in Kampala on Thursday, Ssewanyana said the prices of charcoal and petrol went down in November.
“This is because fuel prices are dictated by the world market despite the fact that the transport fares are still high since Uganda Taxi Operators and Drivers Association, the private operators dictate prices,†he said.
Ssewanyana said rises in food and transport prices were expected because of the festive season.
“We should also note that prices for commodities will fall if traders import too much for the festive season,†he said.
He said the monthly headline inflation rate for November went up by 1.9% from 0.9%, the previous month.
“Sugar prices rose in most centres by sh2,500 or sh2,200. This is because most of it is exported to southern Sudan and eastern Democratic Republic of Congo.
“This leaves a shortage here coupled with the high taxes of imported sugar,†he said.
Ssewanyana said prices for fruits and vegetables went up in all centres due to decreased supplies.
“The heavy rains in most parts of the country have made roads impassable, hampering the transportation of foodstuffs to urban centres,†he said.
THE November inflation rose to 9.2% from 7.2% in October, the highest rate since August last year on the back of higher food and electricity prices, the Uganda Bureau of Statistics (UBOS) said.
“This has been the highest inflation rate of this year since August last year.
“The big increase was due to high price levels for food stuffs, cereals, fruits and vegetables,†said UBOS director of macro-economic statistics, Mathew Ssewanyana.
In August last year, inflation was at 7.8%.
“Domestic and industrial electricity tariffs went up by 40% in all centres effective November 1. The manufacturers have to make profits. So we expect the prices of commodities to rise,†said Ssewanyana.
Releasing the monthly consumer price index in Kampala on Thursday, Ssewanyana said the prices of charcoal and petrol went down in November.
“This is because fuel prices are dictated by the world market despite the fact that the transport fares are still high since Uganda Taxi Operators and Drivers Association, the private operators dictate prices,†he said.
Ssewanyana said rises in food and transport prices were expected because of the festive season.
“We should also note that prices for commodities will fall if traders import too much for the festive season,†he said.
He said the monthly headline inflation rate for November went up by 1.9% from 0.9%, the previous month.
“Sugar prices rose in most centres by sh2,500 or sh2,200. This is because most of it is exported to southern Sudan and eastern Democratic Republic of Congo.
“This leaves a shortage here coupled with the high taxes of imported sugar,†he said.
Ssewanyana said prices for fruits and vegetables went up in all centres due to decreased supplies.
“The heavy rains in most parts of the country have made roads impassable, hampering the transportation of foodstuffs to urban centres,†he said.