Uganda’s annual inflation as measured by the Consumer Price Index for the 12 months to January 2024 increased to 2.8 percent compared to 2.6 percent registered in the year ended December 2023.
According to the Uganda Bureau of Statistics (UBOS), the main driver of inflation was the passenger transport fares by taxi and hired cars which increased to 5.6 percent in January 2024 compared to 2.1 percent registered in December 2023.
Annual domestic flight charges also increased by 2.3 percent in January compared to minus 1.0 percent registered in December 2023. Annual church wedding fees also increased by 30.7 percent in January 2024 compared to 9.5 percent registered in the year ended December 2023.
The other drivers were prices of Cassava flour which increased by minus 7.3 percent in January 2024 compared to minus 12.2 percent in December 2023, and Maize flour prices which increased by minus 31.1 percent in January 2024 compared to minus 31.5 percent recorded in December 2023.
Annual Energy Fuel and Utilities (EFU) inflation increased to 7.4 percent in the year ending January 2024 compared to 6.4 percent registered in the year ended December 2023.
“This was due to the increase in the petrol prices by 4.4 percent in January 2024 compared to 0.6 percent in December 2023, Firewood prices increased by 9.4 percent in January 2024 compared to 7.3 percent in December 2023, and Diesel prices registered minus 6.6 percent in January 2024 compared to minus 9.1 percent recorded in December 2023,” UBOS noted.
Annual Food Crops and Related Items Inflation increased to 2.6 percent in the year ending January 2024 compared to 2.5 percent registered in the year ended December 2023. This is mainly attributed to Annual Vegetables, tubers, plantains, cooking bananas and pulses inflation that increased to 2.2 percent in the year ending January 2024 compared to 1.4 percent registered in December 2023.
Particularly, cooking bananas prices increased by 1.4 percent in January 2024 compared to minus 11.4 percent registered in December 2023, sweet potatoes prices registered minus 16.5 percent in January 2024 compared to minus 23.3 percent registered in December 2023, Green cabbage prices increased by 10.7 percent in January 2024 compared to minus 0.7 percent registered in December 2023. Green pepper prices increased by 4.0 percent in January 2024 compared to minus 6.6 percent registered in December 2023.
However, ‘Alcoholic Beverages, Tobacco and Narcotics’ inflation increased at a slower rate to 3.4 percent for the year ending January 2024 compared to 3.6 percent for the year ended December 2023. ‘Information and Communication’ inflation increased to 1.8 percent in the year ending January 2024 compared to 2.1 percent registered in the year ended December 2023. ‘Housing, Water, Electricity, Gas, and Other Fuels’ inflation increased to 4.3 percent in the year ending January 2024 compared to 4.6 percent registered in the year ended December 2023.
Analysis by geographical areas and income groups revealed that Arua registered the highest inflation of 5.6 percent for the 12 months to January 2024 compared to 5.5 percent recorded in December 2023. This was mainly driven by annual ‘Food and non-alcoholic beverages’ inflation that registered at 3.2 percent in January 2024 compared to 4.3 percent registered in December 2023. In addition, Annual Housing, Water, Electricity, Gas and other fuels’ inflation increased to 11.5 percent in January 2024 compared to 7.9 percent registered in December 2023.
The second highest Annual Inflation was registered in Fort portal Centre at 3.7 percent for the year ending January 2024 compared to 4.2 percent recorded in December 2023. This was mainly driven by annual ‘Housing, Water, Electricity, Gas and other fuels’ inflation that increased to 7.8 percent in January 2024 compared to 4.8 percent in December 2023. In addition, Annual ‘Furnishing, Household equipment and Routine household maintenance’ inflation increased to 3.1 percent in January 2024 compared to minus 0.7 percent registered in December 2023.
The lowest annual inflation was registered in Kampala Middle Income at 1.6 percent for the year ending January 2024 compared to 1.1 percent recorded in December 2023. This was mainly due to the annual ‘Transport’ inflation recorded at 0.5 percent in January 2024 compared to 2.3 percent registered in December 2023.
