The decline in commodity prices, especially food and fuel, has helped Uganda to register the lowest inflation rate in the last 15 months. The Uganda Bureau of Statistics (UBOS) said yesterday that Uganda’s annual headline inflation, which includes items in Consumer Price Index (CPI), declined to 3.9 percent over the last 12 months compared to 4.9 percent in the previous year due to a decline in the wide range if commodity prices.
This is the lowest inflation rate Uganda has registered since February 2022, when the country registered an annual inflation rate of 3.1 percent. The current level of both the annual headline and annual core inflation are below the Bank of Uganda’s (BoU) Policy target of controlling Uganda’s inflation at five percent. A research Fellow at the Economic Policy Research Centre, Mr. Paul Lakumu, said:
“It is a good sign that Uganda’s economy is recovering from the shocks of COVID-19 pandemic supply chain disruption, and the global economic shocks from Russia and Ukraine.”