Food items in a Kampala market

Uganda’s year-on-year inflation came down to 5.2 percent in August compared to 5.7 percent recorded in July 2017, the Uganda Bureau of Statistics (Ubos) says in the latest consumer price index (CPI). The droop was helped by the drop in food prices in most markets.

Core inflation, which excludes food, fuel, electricity and metered water, dropped to 4.1 percent during the period under review from 4.5 percent previously, Ubos says in the CPI report.

The decline in core inflation was attributed to the reduction in the prices of services that dropped 3.3 percent in August compared to 4.4 percent for the year ended July b2017.

Food crops inflation came down to 11.8 percent in August compared to 12.9 percent in July helped by the 17.4 percent decline in fruits inflation compared to the 24.2 percent registered during the year ended July 2017.

The annual Energy, Fuels and Utilities (EFU) inflation registered 7.8 percent for the year ending August 2017; the same rate recorded during the year ended July 2017.

But the Annual inflation for solid fuels (charcoal and firewood) increased to 7.1 percent for the year ending August 2017 compared to 6.7 percent recorded for the year ended July 2017, pushed by low supplies in the markets.

However, Liquid Energy Fuels inflation declined to 5.7 percent for the year ending August 2017 compared to 6.4 percent recorded in July 2017.

Among the towns considered by Ubos for the CPI, Fort Portal Town registered the highest year-on-year inflation of 9.2 in August 2017 though lower than 9.9 percent recorded in July. The drop was due to the reduction in the prices of non-alcoholic drinks that registered 18.1 percent decline compared to 19.3 percent in July.

Kampala, divided in to three (Kampala high income, Kampala low income and Kampala low) recorded the least year-on-year inflation as on average it recorded 4.4 percent in August compared to 5 percent in July. Compared to other major towns in the country, Kampala, Uganda’s capital city, receives food and other supplies from all corners.

However on the monthly basis, headline inflation increased by 0.2 percent from 0.5 percent in July as food prices increased by 0.9 percent during the month of August 2017 from the earlier drop of 2.9 percent recorded in July 2017