Optimism as Uganda’s August inflation drops to 1.9 percent

The Consumer Price Index for Uganda for the 12 months to August 2021 decreased to 1.9 percent, down from 2.1 percent in July 2021, according to Uganda Bureau of Statistics.

CPI is a measure of the average change in prices over time in a fixed market basket of goods and services.

The decline mainly attributed to the Annual Transport Inflation that decreased to 7.3 percent for the 12 months to August 2021, down from 10.7 percent in July 2021.

In addition, Annual inflation for ‘Recreation, Sport and Culture’ decreased to minus 0.3 percent in August 2021, down from 0.7 percent and ‘Personal Care, Social Protection and Miscellaneous Goods’ decreased to 1.8 percent in August 2021, down from 2.2 percent in July 2021.

However, Ms Kaudha Aliziki Lubega, the Ubos director macroeconomic statistics, said the Annual Food and Non-Alcoholic Beverages inflation increased to 1.3 percent for the 12 month to August 2021 up from 0.7 percent in July 2021.

 In addition, Annual inflation for ’ Furnishings, Household Equipment and Routine Household’ increased to 1.7 in August 2021, up from 1.2 percent in July 2021 and ‘Restaurants and Accommodation Services’ increased to 1.5 percent in August 2021, up from 1.3 percent in July 2021, see Figure 1 Below. Annual Food and Non-Alcoholic Beverages.

The Core Inflation for the 12 months to August 2021 decreased to 2.2 percent down from 2.5 percent in July 2021. This is attributed to Annual Services Inflation that decreased to 2.5 percent in August 2021 down from 4.0 percent in July 2021.

However, the Other Goods Inflation for the 12 months to August 2021 increased to 1.9 percent up from 1.3 percent in July 2021.

Ms Kaudha said the Non-Core inflation for the 12 months to August 2021 increased to 0.1 percent up from minus 0.0 percent in July 2021. The increase in Annual Non-Core Inflation is mainly attributed to Annual Energy Fuel and Utilities Inflation (EFU) that increased to minus 0.5 percent, up from minus 0.9 percent in July 2021.

The rise in EFU Inflation was due to Annual Liquid Energy Fuels Inflation that increased to 2.2 percent in August 2021 up from 0.1 percent in July 2021. Specifically, Annual Petrol increased to 7.4 percent in August 2021 up from 4.6 percent in July 2021.

However, Annual Food Crops and Related Items Inflation decreased to 0.5 percent in August 2021 down from 0.9 percent in July 2021. This was due to Annual Fruits and nuts Inflation that decreased to minus 2.1 percent in August 2021 down from 2.6 percent in July 2021.