December inflation down to 4 percent
Jan 07, 2008
THE December inflation rate dropped to 4.9% from 5.2%, the Uganda Bureau of Statistics (UBOS) senior statistician has disclosed.
By Alice Kiingi
THE December inflation rate dropped to 4.9% from 5.2%, the Uganda Bureau of Statistics (UBOS) senior statistician has disclosed.
“The 3% difference is largely on account of lower prices of staple foods, vegetables and sugar in most centres during the peak of the festive season compared to last year,†Richard Ssombwe explained during the release of the Consumer Price Index (CPI) report at Statistics House in Kampala.
The annual core inflation, formerly underlying inflation, which excludes food, fuel, metered water and electricity from the CPI basket of goods, fell to 6.6% from 6.7%.
“The drop was attributed to prices of goods and services increasing at a reduced rate.â€
“The monthly change in prices of goods and services stood at +1.31% from December 2006’s +1.41%, indicating an increase in prices but at different rates. This also led to a reduction in annual core inflation,†Ssombwe said.
The monthly headline inflation rate went up by 1%, the same rate registered in November.
“This does not indicate stable prices because it implies that prices increased by 1% in November and increased again by 1% in December,†Vincent Musoke Nsubuga, the UBOS principal statistician, explained.
Predicting next month’s inflation levels, Ssombwe said: “The CPI and inflation are expected to rise if the fuel crisis persists. However, we cannot tell the actual level.â€
Transport and communication registered a 3% increase largely due to high demand for transport during the festive season. This was mainly reflected in Kampala Low (average income-earners) at 5.8%, while Kampala High’s was 4.2%.
Ssombwe said energy, fuel and utilities, washing soap and charcoal prices increased by 4%.
The monthly food prices increased by 0.6% due to low supply of staple foods, especially matooke in most centres and fruits due to end of the harvesting season.
Musoke said: “Increases in food prices were due to reduced supplies to the markets.â€
THE December inflation rate dropped to 4.9% from 5.2%, the Uganda Bureau of Statistics (UBOS) senior statistician has disclosed.
“The 3% difference is largely on account of lower prices of staple foods, vegetables and sugar in most centres during the peak of the festive season compared to last year,†Richard Ssombwe explained during the release of the Consumer Price Index (CPI) report at Statistics House in Kampala.
The annual core inflation, formerly underlying inflation, which excludes food, fuel, metered water and electricity from the CPI basket of goods, fell to 6.6% from 6.7%.
“The drop was attributed to prices of goods and services increasing at a reduced rate.â€
“The monthly change in prices of goods and services stood at +1.31% from December 2006’s +1.41%, indicating an increase in prices but at different rates. This also led to a reduction in annual core inflation,†Ssombwe said.
The monthly headline inflation rate went up by 1%, the same rate registered in November.
“This does not indicate stable prices because it implies that prices increased by 1% in November and increased again by 1% in December,†Vincent Musoke Nsubuga, the UBOS principal statistician, explained.
Predicting next month’s inflation levels, Ssombwe said: “The CPI and inflation are expected to rise if the fuel crisis persists. However, we cannot tell the actual level.â€
Transport and communication registered a 3% increase largely due to high demand for transport during the festive season. This was mainly reflected in Kampala Low (average income-earners) at 5.8%, while Kampala High’s was 4.2%.
Ssombwe said energy, fuel and utilities, washing soap and charcoal prices increased by 4%.
The monthly food prices increased by 0.6% due to low supply of staple foods, especially matooke in most centres and fruits due to end of the harvesting season.
Musoke said: “Increases in food prices were due to reduced supplies to the markets.â€