Inflation dips further to 7.3%

Nov 03, 2003

INFLATION rate for October dropped further to 7.3%, according to the latest Consumer Price Index (CPI) released the Uganda Bureau of Statistics (UBOS) last week

By Steven Odeu

INFLATION rate for October dropped further to 7.3%, according to the latest Consumer Price Index (CPI) released the Uganda Bureau of Statistics (UBOS) last week.

Annual headline inflation rate fell from 9.5% in September to 7.3% for the year ended October.

However, prices of most food crops, locally manufactured and imported goods as well as transport charges for October remained much higher than those recorded in the same period last year when inflation was just 3.9%.

CPI is a measure of inflation based on the changing cost of a fixed basket of goods and services consumed by households.

Mathew Ssewanyana, the UBOS macro-economic statistics director attributed the increases in prices to the prolonged drought.

He, however, said the minus 23% point fall in inflation was largely due to the ongoing harvesting season.

The monthly headline inflation rate went up to 0.6% in October.

This was due to increases in the prices of fruits and vegetables, second-hand clothes, soap and other manufactured commodities. Headline inflation is based on relative changes in prices for all goods and services.

The annual underlying inflation rate also dropped further to 5.6% in October, compared to 6.2% recorded in September, while the monthly underlying rate slightly went up by 0.1% in October.

Underlying inflation is based on relative changes in prices for all goods and services excluding food crops, which is done to minimise the effects of irregular long-term fluctuations that are mainly induced by weather conditions.

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