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Prices of food crops drop

By Racheal Nabisubi

Added 9th July 2019 10:45 AM

The drop in food prices led to a decline in monthly inflation for the month ended June 2019

Prices of food crops drop

Tomatoes are among the items that have seen notable price reductions. Photo by Umar Nsubuga

The drop in food prices led to a decline in monthly inflation for the month ended June 2019

Prices of food stuffs and related items in Kampala and neighbouring city suburbs have dropped as a result of the recent rains. 

Notable price reductions include; sweet potatoes, cassava, matooke, Irish potatoes, fruits, vegetables, maize flour, tomatoes. 

Vincent Nsubuga, the Uganda Bureau of Statistics (UBOS) acting director of macroeconomic statistics, notes that the drop in prices of food crops is due to the change in weather.

"June and July are harvesting seasons which lead to a reduction in prices of food crops due to increased supply on to the market," Nsubuga said.

A survey in the different markets shows that 15 tomatoes cost sh2000, onions cost between sh1000 to sh3000, six pieces of green pepper cost sh2000.

It costs between sh3000 to sh3500 to buy a kilogram of cow peas, a kilogram of beans costs sh2000 from sh4000. Maize flour costs between sh1600 to sh1800.

The drop in food prices led to a decline in monthly inflation for the month ended June 2019.

According to the consumer price index (CPI) report, monthly inflation for June 2019 dropped by 0.1% in June from the 0.4% rise recorded in May 2019. 

This was due to a reduction in prices of food crops by 3.5% for the month of June 2019 from the earlier 2.6% rise recorded in May 2019.

CPI is a measure of the monthly average change in prices that consumers pay for a market basket of goods and services during a selected period.

Food crops inflation is the main driver of inflation. 

The CPI report further indicates that annual energy, fuel and utilities (EFU) recorded to minus 0.5% for the year ending June 2019 compared to 4.6% recorded for the year ended May 2019. 

Dr Fred Muhumuza, an economist and lecturer at Makerere University, concurs that food crops prices are going down due to rains and the harvesting season.

He adds that the energy, fuel and utility prices dropped due to petroleum prices that are down as tensions of US and Iran become familiar and dollar remaining stable now in ranges of 3700 from ranges of 3600 the last few months will signal stability. 

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