Uganda’s headline inflation for the month of July increased by 1 percent, largely fuelled by demand for certain goods and services due to the Covid-19 lockdown.

According to the June report released by Uganda Bureau of Statistics (UBOS), inflation for July 2021 rose by 2.1 percent, up from 2.0 percent in June 2021.

“This was mainly attributed to the Annual Food and Non-Alcoholic Beverages Inflation that increased to 0.7 percent in July 2021 from minus 1.6 percent recorded in June 2021,” the report indicates.

In addition, Annual inflation for ‘Restaurants and Accommodation Services’ increased to 1.3 percent in July 2021 from 0.2 percent and ‘Housing, Water, Electricity, Gas and Other Fuels’ increased to minus 0.9 percent in July 2021 from minus 1.5 percent in June 2021.

However, annual headline inflation for Transport is recorded at 10.7 percent for the 12 month to July 2021 down from 15.9 percent in June 2021. In addition, Annual inflation for ’ Information and Communication’ decreased to minus 1.4 in July 2021, down from 0.9 percent in June 2021 and ‘Alcoholic Beverages, Tobacco and Narcotics’ decreased to 1.3 percent in July 2021, down from 1.6 percent in June 2021.

The Core Inflation for the 12 months to July 2021 decreased to 2.5 percent down from 2.7 percent in June 2021. This is attributed to Annual Services Inflation that decreased to minus 0.1 percent in July 2021 down from 1.4 percent in June 2021. However, the Other Goods Inflation for the 12 months to July 2021 increased to 0.4 percent up from minus 0.1 percent in June 2021.

The Non-Core inflation for the 12 months to July 2021 increased to 0.05 percent up from minus 2.1 percent in June 2021. The increase in Annual Non-Core Inflation is mainly attributed to Annual Food

Crops and Related Items Inflation that increased to 0.9 percent for the 12 months to July 2021, up from minus 2.8 percent in June 2021. In addition, Annual Energy Fuel and Utilities Inflation (EFU) increased to minus 0.9 percent in July 2021 up from minus 1.3 percent in June 2021.

The Goods inflation for the 12 months to July 2021 increased to 1.0 percent up from minus 0.1 percent in June 2021. The rise in Annual Goods Inflation was attributed to Annual Non-Durable (ND) Goods Inflation that increased to 0.6 percent in July 2021 up from minus 0.9 percent in June 2021.

In addition, Annual Inflation for Semi-Durable Goods (SD) increased to 1.7 percent for the 12 month to July 2021 up from 1.6 percent in June 2021. However, Annual Inflation for Durables (D) decreased to 3.4 percent for the 12 months to July 2021 down from 3.8 percent in June 2021.

Analysis by geographical areas and income groups reveal that Kampala High Income registered the highest Inflation of 2.6 percent for the 12 months to July 2021 down from 3.0 percent in June 2021. This was driven by Annual ‘Restaurants and Accommodation Services’ Inflation that increased to 0.5 percent in July 2021 up from minus 0.8 percent registered in June 2021. In addition Annual ‘Housing, Water, Electricity, Gas and Other Fuels’ Inflation increased to minus 0.3 percent in July 2021 up from minus 1.1 percent in June 2021.

The second highest Inflation was registered in Arua at 2.5 percent for the 12 months to July 2021 up from 2.2 percent in June 2021. The main driver was the Annual Food and Non Alcoholic Beverages Inflation that increased to 3.3 percent in July 2021, up from minus 0.3 percent in June 2021. In addition, ‘Restaurants and Accommodation Services’ Inflation increased to 3.7 percent for the 12 months to July 202 up from minus 0.3 percent in June 2021.

Leave a comment

Please let us know what you think