Regions in Uganda with the high inflation revealed, UBOS registers a drop in inflation

The registered price reduction was in foodstuffs and fuel.

The drop means that there was a slower increase in prices of commodities in February than in January, and this is the first time Uganda is registering single-digit inflation since September 2022.

Aliziki K Lubega, the Uganda Bureau of Statistics director of economic statistics, said the drop was facilitated by a decline in maize flour prices from 90.8 per cent in January to 53.3 per cent.

Regional performance

North

According to Lubega, Arua experienced the highest inflation for the second time within the past year from 13.1 per cent to 13.8 per cent.

Gulu came in second with a decline in inflation from 12.4 per cent in January to 12.3 per cent.

Central

Kampala had the lowest inflation with a big leap from 8.4 per cent to 6.8 per cent. The drop is attributed to a decline in inflation on food and nonalcoholic beverages which fell from 20.4 per cent to 16.5 per cent.

The executive director of UBOS Chris N. Mukiza said it is too early to project further declines in inflation given the shocks that continue to nudge the economy.

“Let us wait and see what happens in March, April, May and June to see how inflation is behaving,” he said.

Performance of commodities in February compared to January 2023

Sugar prices declined to 42.8 per cent from 50.4 per cent.
Rice inflation dropped to 44.4 per cent from 51.4 per cent in January.
Laundry soap inflation dropped to 21.5 per cent from 51.4 per cent in January.
Paraffin prices averaged at Shs4,545. Diesel and petrol dropped to Shs5,109 and Shs5,028, respectively.
Petrol inflation dropped from 7.1 per cent to 1.5 per cent.
Charcoal inflation dropped from 14.3 per cent to 10.2 per cent.
Energy fuel and utility inflation dropped from 7.6 per cent to 5.2 per cent.
Liquid energy fuel inflation dropped to 9.1 per cent from 14.8 per cent.
Food crops inflation dropped to 27.4 per cent from 27.6 per cent.

However, prices for some goods increased in the same period.

A kilogramme of matoke increased from Shs667 to Shs1,011.

A kilogramme of sweet potatoes rose from Shs849 to Shs1,068.

A kilogramme of a bar of laundry soap increased from Shs5,124 to Shs6,327.

According to UBOS, core inflation reduced to 7.8 per cent from 9 per cent as a result of inflation drops in goods.