Uganda’s Inflation Registers Slower Growth at 3.2% despite rise in core prices

by Business Times writer
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Uganda’s annual inflation as measured by the Consumer Price Index for the 12 months to April 2024 increased at a slower rate of 3.2 percent compared to 3.3 percent registered in March.

The main driver to Annual Core Inflation was the Annual Other Goods Inflation that increased to 2.0 percent in the year ending April 2024 compared to 1.6 percent recorded in the year ended March 2024.

“This was due to the Fish and other seafood inflation that increased to 16.5 percent in April 2024 compared to 10.1 percent in March 2024. Specifically, Dried Kapenta (Mukene) prices increased by 28.8 percent in April 2024 compared to 6.9 percent in March 2024 and Fresh Tilapia prices increased by 15.6 percent in April 2024 compared to 5.8 percent recorded in March 2024,” the report reads in part.

Refined oil prices registered minus 8.6 percent in April 2024 compared to minus 14.1 percent recorded in March 2024 and Local chicken prices increased by 3.6 percent compared to 0.3 percent recorded in March 2024.

Additionally, Annual Services Inflation increased at a slower rate of 5.4 percent compared to 5.5 percent registered in the year ended March 2024.

“This was mainly due to the increase in the prices of Domestic flights by 14.5 percent in the year ending April 2024 compared to 5.5 percent registered in the year ended March 2024. Hotel and Lodging Accommodation Services Inflation increased to 7.6 percent in the year ending April 2024 compared to 1.9 percent registered in the year ended March 2024.”

Annual Energy Fuel and Utilities Inflation increased to 7.9 percent compared to 7.6 percent registered in the year ended March 2024.

This, according to the report was due to the increase in Electricity charges by 1.4 percent compared to minus 1.0 percent in March 2024, Petrol prices increased by 6.9 percent compared to 5.4 percent in the year ended March 2024 and Charcoal prices increased by 18.8 percent compared to 17.7 percent in the year ended March 2024.

Annual Food Crops and Related Items Inflation decreased to minus 2.4 percent compared to minus 0.4 percent registered in the year ended March 2024.

“This was mainly attributed to the decrease in prices of Cooking Bananas by minus 11.7 percent in the year ending April 2024 compared to 8.2 percent registered in March 2024. Dry Beans prices decreased by minus 8.5 percent in the year ending April 2024 compared to minus 3.4 percent registered in March 2024. Sweet Potatoes prices decreased by minus 19.9 percent in the year ending April 2024 compared to minus 12.0 percent registered in March 2024.”

MONTHLY INFLATION

The Monthly Headline Inflation for April 2024 increased by 0.4 percent from the 0.5 percent rise registered for the month of March 2024.

The main driver was the monthly Food Crops and Related Items Inflation that increased by 2.0 from the 2.3 percent rise recorded in March 2024.

This was mainly due to monthly Vegetables, Tubers, Plantains, Cooking Bananas and Pulses Inflation that increased by 1.8 from the 0.5 percent rise recorded in March 2024.

Specifically, Irish potatoes prices increased by 24.5 percent from the 4.6 percent rise recorded in March 2024 and Onions prices increased by 19.8 percent from the 16.2 percent.

Pineapple prices increased by 27.3 percent from the 0.6 percent, and monthly Mango prices increased by 6.7 percent 21.2 percent.

In addition, Core Inflation increased by 0.2 percent in April 2024 from the 0.4 percent rise registered in March 2024.

The main driver for the rise in Core Inflation was monthly Services Inflation that recorded a 0.3 percent from the 0.7 percent rise recorded in March 2024.

Additionally, monthly Other Goods Inflation registered an increase of 0.2 percent from 0.1 percent.

Monthly Energy Fuel and Utilities Inflation recorded a rise of 0.2 percent in April 2024 from the 0.4 percent drop registered in March 2024.

The rise in Energy Fuel and Utilities inflation was mainly due to monthly Electricity charges that increased by 2.0 percent in April 2024 from the 0.0 percent recorded in March 2024.

Petrol prices increased by 0.4 percent from 0.3 percent drop recorded in March 2024, Diesel prices registered an increase of 1.4 percent from the 0.4 percent rise recorded in March 2024 and Firewood prices increased by 0.8 percent from the 1.8 percent drop recorded in March 2024.

However, Charcoal prices decreased by 1.5 percent from the 1.8 percent drop recorded in March 2024.

HEADLINE INFLATION BY REGION

The report pointed out differences in inflation rates among various regions and income brackets.

High-income earners in Kampala experienced the pinch enduring the highest inflation of 4.5 percent for the 12 months to April 2024 compared to 4.2 percent recorded in March 2024.

“This was mainly driven by Annual ‘Food and Non-Alcoholic Beverages’ inflation that increased to 1.0 percent in April 2024 compared to 0.2 percent registered in March 2024. In addition, Annual ‘Housing, Water, Electricity, Gas and Other Fuels’ inflation increased to 2.6 percent in April 2024 compared to 1.5 percent registered in March 2024,” the report reads.

The second highest Annual Inflation was registered in Fort Portal Centre at 3.4 percent. This was mainly driven by Annual ‘Clothing and Footwear’ inflation that increased to 7.1 percent in April 2024 compared to 4.4 percent registered in March 2024.

In addition, Annual ‘Recreation, Sport and Culture’ inflation increased to 5.5 percent in April 2024 compared to 2.1 percent registered in March 2024.

The least Annual Inflation was registered in Mbale Centre at 1.4 percent. This was mainly due to the annual ‘Insurance and Financial Services’ inflation that registered 1.9 percent in April 2024 compared to 7.4 percent registered in March 2024.

Annual ‘Furnishings, Household Equipment and Routine Household Maintenance’ inflation registered 7.4 percent compared to 10.1 percent registered in March 2024.

The Uganda Bureau of Statistics recommended that Ugandans remain mindful of their expenses as prices for essential items continue to rise.

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