The Uganda Bureau of Statistics (UBOS) has released a report indicating a slight decrease from the previous 12 months ending in September 2023.
The report shows an average inflation rate from October 2022 to October 2023 was 2.4 percent from the 2.7 percent in September 2023. The report highlights changes in the prices of various goods and services.
Notably, the rate of increase in onion prices slowed down to 115.4 percent from 130.8 percent in the previous month, while sugar inflation reduced to 16.3 percent from 34.0 percent. In a surprising turn, maize flour prices decreased by -23.0 percent, a significant change from the previous -3.8 percent.
These changes in food prices, specifically maize flour and sugar, are considered the main drivers behind the overall slowdown in the Consumer Price Index. Other items in the “core” category, like rice and Mukene, also saw reduced inflation rates.
On the other hand, the services sector experienced an increased inflation rate of 2.2 percent, up from 1.6 percent in the previous year. This increase was primarily due to higher inflation in education services, which rose to 6.1 percent compared to 3.8 percent in the previous month.
The Energy, Fuel, and Utilities sectors also saw increased inflation, rising to 2.2 percent from -1.2 percent. This was attributed to factors such as increased petrol, electricity, and water charges.
Overall, the report notes a 0.3 percentage point reduction in inflation on a year-to-year average basis, with a month-to-month increase of 0.6 percent.
The report also highlights changes in the prices of selected products on a month-to-month basis, including petrol, diesel, and sugar, which can have significant implications for the overall economy in Uganda.