Prime Minister Robinah Nabbanja has attributed the spike in the prices of essential commodities to the high demand for their raw materials at a global level.
Speaking during an interview at Parliament on Tuesday, Nabbanja explained that the increased cost of living is not only affecting Uganda but the world as a whole.
’’Opening up of the economies after the Covid-19 imposed lockdown, increased demand for raw materials from manufacturing countries like China, Malaysia and Indonesia. In turn, these countries were overwhelmed by demand,’’ Nabbanja stated.
Recently prices of cooking oil, soap, and fuel skyrocketed, a rise in prices of some commodities and for example, a bar of soap increased to Shs 9000 with cooking oil surpassing its normal market price.
In the neighboring Kenya a kilo of maize flour jumped to Sh126.31 in January from Sh118.71 . Sukuma wiki, spinach and Irish potatoes increased by 6.41, 5.69, 5.66 and 3.87, respectively.
Several global phenomenon and external factors among them the ongoing Russia-Ukraine war has also led to a rise in the global price of petroleum, which is a key factor of production.
The Prime Minister further said that the global spike in the prices of essential commodities is a temporary shock that is bound to normalize soon.
President Museveni is today meeting the NRM caucus at Kololo ceremonial grounds to discuss among others the possible initiatives and solutions to assist with managing fuel prices.
Economic experts have suggested provisionally cutting or suspending fuel taxes to provide some relief to the final consumer.