1. Home
  2. Stories
  3. Economy
  4. Inflation

UBOS reports rise in August inflation

Peter 2nd Sep, 2024 Economy Pedson Mumbere
UBOS reports rise in August inflation

Edgar Niyimpa, the Acting Head of Professional Services at UBOS, speaks at the press briefing as his colleagues - Christopher Asingwire. Makoma is Vincent, and Irene Namugenza - look on.


The Uganda Bureau of Statistics (UBOS) has released the Consumer Price Indices and Inflation report for August 2024, highlighting a slight increase in monthly inflation and a noticeable rise in the prices of certain commodities, particularly mangoes and oranges.

According to the report, monthly inflation in August 2024 rose by 0.2%, despite a 3.4% decrease in the annual headline inflation, which now stands at 3.5%, down from 4.0% in July 2024.

The report revealed that the sharpest inflationary pressures came from mangoes and oranges, with prices soaring by 33.7% and 10.9%, respectively. In July 2024, a litre of orange juice was sold at UGX 1,716, but by August, this price had jumped to UGX 1,908.

  • Similarly, the cost of dried beans and sweet potatoes also saw a significant increase, contributing to the overall rise in food inflation.

Edgar Niyimpa, a principal statistician at UBOS, largely attributed the price hike to seasonal factors. “Some harvests are more vulnerable to seasonal changes, which directly impacts the supply and, consequently, the prices of these commodities," he said.

While mangoes and oranges experienced significant price hikes, the prices of other staple foods such as onions, matooke, cabbages, and cassava saw a slower rate of increase compared to the same period last year. This indicates that while some food items are becoming more expensive, others remain relatively stable, offering some relief to consumers.

  • On a positive note, the report also indicated a decrease in fuel prices, which is likely to alleviate some of the pressures on household budgets. The price of petrol dropped from UGX 5,436 per litre in July to UGX5,350 in August, while the price of diesel fell from UGX 4,919 to UGX 4,882 per litre over the same period. This reduction in fuel costs could have a stabilizing effect on the prices of goods and services that rely heavily on transportation, such as food distribution.

The UBOS officials warned that as the prices for essential commodities rise, citizens need to take proactive measures to manage their household budgets so as to mitigate the impact of inflation on their daily lives.

Niyimpa said that understanding the seasonal nature of price fluctuations can help consumers make informed decisions and maintain a balanced diet despite economic challenges.

According to the IMF, inflation is still a pressing issue in the broader East African region, especially driven by external factors such as global commodity price fluctuations, supply chain disruptions, and currency depreciation. As of August, inflation across Sub-Saharan Africa, including East Africa, remained high, with a median inflation rate nearing 9%. This is almost double the pre-pandemic levels and continues to strain household budgets, par-ticularly in food and energy.

While some countries are seeing slight improvements, the economic environment re-mains fragile, and any relief in inflation has yet to translate into significant economic growth or improved living standards for many people in the region.

  • On the global scene, inflation showed a mixed but generally declining trend, though the pace and extent varied by region. On a global scale, inflation is projected to decline to 5.9% in 2024 from 6.8% in 2023, with further decreases expected in 2025. However, the decline is uneven, with core inflation, particularly in services, remaining sticky and com-plicating monetary policy efforts.

Similar Posts You May Like 

Most Recent

Popular Links